Carl Zeiss plans biggest lens factory in India for €250 mn
- The capacity for 260,000 Carl Zeiss lenses a day, is six times what the firm produces today
NEW DELHI : Carl Zeiss India is investing over €250 million to build a spectacle lens production facility in Bengaluru, which will be the German optical systems group’s largest ‘vision’ factory in the world, a senior company executive said.
The investment indicates the strategic importance of India as a key driver of potential growth for the Zeiss group, managing director Miguel Gonzalez Diaz said in an interview. Construction will start next month on the land procured two years ago. Work is expected to be completed by October 2024.
The firm, which follows an October to September financial year, expects to close this financial year with sales of ₹1,800 crore, and expects to double sales in less than six years, Diaz said.
“Once the facility is operational, we will be able to manufacture 260,000 lenses every day. The board of directors decided Zeiss India is capable of doing more for the group because they trust in the capacities, competence and skills we have," he said. The planned capacity for 260,000 Carl Zeiss lenses a day, is six times what the company produces today. Production will be ramped up between end of 2024 and 2026. The unit will also produce metrology solutions.
The company will hire more staff in both production and in research and development (R&D). Hirings for R&D will depend on the size of the project, he said. In R&D, hirings will include software engineers. The group spends 15% of its global sales in R&D across global research centres.
After 25 years of starting operations in India, Carl Zeiss has roughly 1,400 employees, which may go up to 2,000 because of the planned expansion, he said. “Our production facilities cater not only to the domestic market, but also to overseas markets," said Diaz.
Carl Zeiss India makes spectacle blank (unfinished lenses used in production of eye glasses) and prescription lenses in the country. Three-fourth of its output is exported to Europe, Asia, the Middle East and Africa, and the rest is used to meet domestic demand.
Diaz said India is capturing board-level attention from many companies as well as for Carl Zeiss, thanks to its fast economic growth, availability of highly skilled employees and stability.
“I think India will play a very key role in the global strategy of many companies. For Zeiss, it is now one of the key areas that we have to invest in," he said. When producing for exports, one has to fulfil all the global standards, and India has the capacity and skills to produce not only for the domestic market but also for overseas markets, Diaz said.
The Zeiss group sees India as a critical supply hub, going ahead, with not only an increasing manufacturing footprint but also third-party procurement from other Indian suppliers, Diaz said.
To a question on whether India can compete with the likes of Japan in precision engineering, he said: “Yes, why not? India has the potential to compete with countries like Japan in precision engineering. We have a skilled workforce, government support, infrastructure and opportunities to set-up advanced infrastructure. The government’s push for ‘Make-in-India’ initiative has seen massive success in the last few years. The environment for business and government support is encouraging global brands to set up manufacturing facilities in India and manufacture offerings that are of one global quality," he said.
