Leo Mattel

VIP Industries, formerly known as Blow Plast Inc., is an Indian luxury luggage manufacturer noted for its foray into the toy business from 1986 to 2000.
To overcome tight foreign trade regulations in India due to the Foreign Exchange Regulations Act which required a 40% dilution of shares to transform the company into an Indian company, Mattel partnered with Blow Plast in a joint venture to create an Indian affiliate known as Leo Mattel or Leo Toys in 1986. Ownership of the affiliate company was in a 60-40 split between Blow Plast and Mattel respectively; the partnership allowed Mattel to conduct business in India with the same permissions as an Indian company as Mattel's ownership stake stayed under the 40% limit set by the FERA.
With the partnership in full swing, Leo Mattel manufactured Hot Wheels cars, Barbie dolls and most notably, He-Man figures. These toys were made in factories in Mumbai and Nagpur. Mattel was able to import the principal materials required starting 1991 with import restrictions lifted. The Leo Mattel name was phased out in 2000 when Mattel terminated its joint venture with Blow Plast on the grounds that the latter failed to meet Mattel's quality standards, with Mattel then establishing Mattel Toys (India) Pvt. Ltd. in its place the same year. Leo Mattel-manufacture Hot Wheels are now noted to be highly collectible today.
Category:Glossary