Luxottica plans subsidiary in India

Luxottica Group, the world's largest manufacturer of sunglasses, has incorporated a wholly-owned subsidiary, Luxottica India Eyewear Pvt Ltd , to distribute luxury and fashion eye wear.

The board of directors of Rayban Sun Optics India (RSIL) received a communication from the Italy-based Luxottica Group through a letter dated December 17 regarding the setting up of a wholly-owned subsidiary, RSIL said in a filing with the BSE today.

The Milan-headquartered Luxottica Group already operates in India through its existing wholly-owned arm Ray Ban Indian Holdings Inc for selling Ray-Ban sunglasses. Ray Ban Indian Holdings has a 44.15% stake in RSIL.

Luxottica India Eyewear plans to commence the distribution of luxury and fashion brand eye wear, other than RayBan, from January 2008.

The incorporation of the wholly-owned subsidiary was in line with the release of the non-objection certificate by RSIL.

The Italian major, which posted net sales of euro 4.7 billion in 2006, had also offered a five-year exclusive licence to RSIL for manufacturing and distribution of RayBan sunglasses and frames in return for allowing Luxottica to set up its own wholesale business in non-RayBan brands.