Luxottica seeks RayBan NOC to enter Indian mkt

New Delhi, Feb 26: Italy's Luxottica Group SpA, which holds a 44per cent stake in RayBan Sun Optics India, owner of luxury eyewearbrand 'Rayban', is seeking the latter's no-objection certificate toenter the Indian eyewear business on its own.

Keeping up with the trend of foreign firms quitting their Indianpartners to go alone in the domestic market, Luxottica has indicatedits intention to set up wholly-owned subsidiaries for the purpose.

Such subsidiaries are proposed to be set up either directly orthrough one of its subsidiaries, engaged in the business of carryingout wholesale distribution of various luxury and fashion brands in theeyewear industry.

Under the proposal made to RayBan, the Italian firm proposes togrant a five-year exclusive license to the company for manufacturingand distribution of frames and sunglasses under the RayBan trademarkmanufactured by Luxottica.

RayBan's Board of Directors have recommended its approval to the shareholders at the ensuing Annual General Meeting.

The proposal from Luxottica comes exactly a month after itsannouncement to acquire an additional 20 per cent interest in RaybanSun Optics for about Euro 11 million.

Luxottica Group on January 25 said in compliance with directionsissued by the Supreme Court of India, it intends to launch a publicoffer to purchase up to 20 per cent of RayBan through its arm -- RayBan Indian Holdings Inc.

If the offer is fully accepted, Luxottica's indirect holdings in RayBan Sun Optics India Ltd will increase to over 64 per cent.

The group gained its interest in RayBan Sun Optics India Ltd from Bausch&Lomb in 1999.

The offer, to acquire upto 48,95,900 equity shares of RayBan at aprice of Rs 104.30 per share, is scheduled to open on March 21.

JM Morgan Stanley Pvt Ltd is acting as the manager to the offer.

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