Two years ago, the opening of the six-lane Bengaluru-Mysore Expressway had created a disruption for toy shops in Channapatna along the way. Travelers no longer stop to make impulse purchases. Brightly colored handmade wooden toys remained unsold. Despite the GI tag, demand for the 200-year-old craft is declining due to lack of innovation and limited access to markets outside the region. The story is not much different for bidriware. Government initiatives, self-help groups, NGOs, e-tailers – and craft entrepreneurs, over the last decade, have tried to re-imagine the art – have supported or sourced from these artisans, displayed them in urban pop-ups and bazaars, and retailed through social media. However, one man has re-imagined Channapatna for the modern shelf and cracked the code to create a successful business model.
In 2011, Bengaluru-based Karthik Vaidyanathan founded Varnam Craft Collective and, about 15 years later, has turned it into a multi-crore business. With retail stores in Bengaluru (Indiranagar, Jayanagar), Mysuru and Goa. But the shift between “a creative passion project” and a craft-based business comes with turmoil and learning, says Vaidyanathan, the brand’s lead designer. He cautions: “One cannot work in a craft with a view to commercial success alone.” Instead, he says, “the bigger the varnam, the greater the impact on the livelihood of artisans”. Furthermore, the delicate dance is to “not dilute the essence of the brand” for the business.
Also read: Bengaluru-based Varnam Craft Collective launches Snugglewallaz
Karthik Vaidyanathan, founder and lead designer of Varnam. (by special arrangement)
Vaidyanathan (right) with a craftsman.
Roots are growing, branches are coming out
The engineer-turned-communications expert started Varnam at the age of 30 with a personal investment of Rs 2 lakh. They began working directly with seven artisan families in Channapatna – India’s Toy Town – to create a fun and functional take on this vibrant craft of wood and lacquerware toys. Think of dangling owls as festive lights; A KuruviOr the sparrow, perched on top of a paper-roll holder; Piggies turned into coaster stands, bunnies into salt-and-pepper shakers and so on. For the first two years, Vaidyanathan would frequent craft markets across the country before customers discovered his home address. “They bought Varnum stocks from my garage,” he recalls.
Wooden toys of Varnam.
Vaidyanathan with women artisans.
Snappy, wooden crocodile by Varnam.
Snappy found its way into textiles by Varnam.
Today, Varnam works with 30 artisan families in Channapatna and over 300 artisan families in 11 other craft forms. “But we are still not Fabindia,” quips Vaidyanathan. “Craft business is not something venture capitalists do. “Give serious consideration to this despite the sector being the second largest employer in the country.” The whispered reality is that a craft business is ‘working-capital intensive’. He says, “This is our biggest struggle. We pay our artisan groups immediately, lest they be crushed.” As a result of their transparency “artisan groups rarely exit after joining Varnum’s group.” But keeping this business practice alive is not always sustainable, he agrees.
Despite public recognition and industry awards, Vaidyanathan says, “We still run month-to-month – and we have not only been in losses in the last three years.” Excluding Covid years they have grown 20% year-on-year. He attributes this to long hours of working in various industries and “his fair share of reality checks” and “knowledge gained from thousands of hours of visiting retail exhibitions, interacting with sellers and buyers, visiting artisans, basking in the sun and learning the ropes of the business”.
Vaidyanathan takes pride in being “insensitive” in the service of the greater good. They closed the Chennai store after 16 months of operation. “We realized that this is not the market for our products because it does not fit into the value system of spending on real estate, silk sarees, diamonds, gold jewelery – things that are long-lasting and have resale value,” he says. “Unprecedented sales during exhibitions in the city” had no impact on retail stores. Instead, Varnam reopened its Jayanagar store in Bengaluru, which was closed “to stop the bleeding during the pandemic”.
Snugglewallaz by Varnam, a collection of 12 anthropomorphic characters in craft traditions.
Vaidyanathan has diversified his range through a multi-pronged approach while respecting his brand’s first choice of craft.
crafting a comment
Competitive market, full of copycat brands, called for Change in business strategy. The signature of Varnam has been Channapatna craft. Vaidyanathan has diversified his range through a multi-pronged approach while respecting his brand’s first choice of craft. To claim ownership of his designs, he began reproducing Varnam’s motifs in various products. Her blockprinted textiles inspired by Channapatna objects allowed Varnam “to move into apparel and soft home furnishings.” This decision to expand helped “create a memorable brand identity”.
Varnam’s Goa outlet.
‘Snugalwala’ exhibition in Bengaluru.
Varnam toys on display at ‘Snugalwala’ exhibition in Bengaluru.
Vaidyanathan knew customers would not return for Channapatna crafts alone. “We make board games with Lambadi women embroiderers, make jewelery with Bidri artisans and so on. But the signature of Varnam – Channapatna craft – makes a strong presence in each of these artisan collaborations: as pieces in embroidered game-mats or Bidri Work is underway in Channapatna Lakh Ternary. “Channapatna will always be at the heart of Varnam but we create things around it. It also introduces our customer base to the different crafts of the country,” he says.
creation of the world
By 2027, Vaidyanathan aims to grow Varnam into a Rs 5 crore business. In August 2024, they received seed funding of Rs 2 crore from two angel investors-cum-designers Geeta Deepali and Hemant Suthar. This fueled Varnam’s biggest growth ever. With this he began a “capital, labor and logistics intensive project”. This month, Vernam launched ‘Snugglewallaz’: “a collection of [12] “Anthropomorphic characters that bring to life the various craft traditions of India.”
Vaidyanathan has drawn on his years of storytelling experience in marketing and radio to infuse “emotion” into Varnam’s signature motifs. In a way, he is turning them into toys again. “I have this clarity: toys with a twist. Toys aren’t just for kids – everyone likes to be playful,” he enthuses. “This starting point” has been the sole driving force behind Varnam’s identity and finds crystallization in Snugglewallaz. “A parrot can be seen in the block-printed cushion cover claw to knit carpet And then into the crewel embroidery of Lambadis – and slowly, its quirks will be revealed. For example, let’s say it’s a superstitious bird and it loves green peppers. We’re hoping this world-building will connect these motifs to the brand,” he says.
The Snugglewalas – The Storytellers of Handmade India The show is running in Bengaluru till October 24 at Sabha, Shivaji Nagar and in Hyderabad from November 13-17 at Crafts Council of Telangana, Banjara Hills.
Writer and poet based in Bengaluru.
published – October 18, 2025 12:33 PM IST