New Delhi: With designer eyewear gaining popularity amongst a diverse cross section and people willing to splurge on the latest branded shades, the world’s biigest maker of sunglasses, Luxottica is all set to set up an Indian subsidiary.
Indians may soon be spotted wearing luxury eyewear brands like Versace, Prada and Chanel. The Milan-headquartered company, which already operates in India through its existing wholly-owned arm Ray Ban Indian Holdings Inc for selling Ray-Ban sunglasses, is ready to market other brands, in what they see as a fast emerging market.
Ray Ban Indian Holdings has a 44.15% stake in Ray Ban Sun Optics India (RSIL), which sells Ray-Ban sunglasses.
Luxottica’s plan to set up a subsidiary has been approved by RSIL shareholders in their recent annual general meeting. The shareholders agreed to grant a no-objection certificate (NOC) to Luxottica Group Spa, an RSIL spokesperson told PTI.
The shareholders’ decision assumes importance as Luxottica needed the NOC under Press Note 1 of 2005, for setting up wholly-owned subsidiary or subsidiaries in India.
The Italian major, which posted net sales of Euro 4.7 billion in 2006, had also offered a five-year exclusive license to RSIL for manufacturing and distribution of Ray-Ban sunglasses and frames in return for allowing Luxottica to set up its own wholesale business in non-RayBan brands.
“Subject to setting up a separate subsidiary to manage the wholesale business for fashion luxury brands (other than Ray-Ban), Luxottica proposed to enter into an exclusive license agreement with our company for manufacturing and distribution of Ray-Ban branded eyewear in India.”