Luxottica seeks RayBan NOC to enter Indian eyewear market

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

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

Such subsidiaries are proposed to be set up either directly or through one of its subsidiaries, engaged in the business of carrying out wholesale distribution of various luxury and fashion brands in the eyewear industry.

Under the proposal made to RayBan, the Italian firm proposes to grant a five-year exclusive license to the company for manufacturing and distribution of frames and sunglasses under the RayBan trademark manufactured 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 its announcement to acquire an additional 20 per cent interest in Rayban Sun Optics for about Euro 11 million.

Luxottica Group on January 25 said in compliance with directions issued by the Supreme Court of India, it intends to launch a public offer to purchase up to 20 per cent of RayBan through its arm -- Ray Ban 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 a price 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.

UNI