Transitions Optical Inc mulls setting up unit in India

US-based $1 billion company, Transitions Optical Inc, a major global player in plastic photochromic lenses, may set up its manufacturing unit in India within next two years.

Talking to Business Standard, Deven Patil, business director (India), said, "The company is evaluating option to set up a manufacturing facility in India or in China".

Deven Patil was on a visit to Ahmedabad to launch company's 'Healthy Sight Counselling' programme to encourage and create awareness for healthy eye care practices in Gujarat.

The company has identified India and China for setting up its plastic photochromic lenses manufacturing facility and currently the company is carrying out due deligence before zeroing in on one of the two countries.

"Within 12 to 18 months the decision will be finalised", adds Patil.

However, he said that the larger market potential combined with low-cost of manufacturing, there is greater possibility of considering setting up unit in India.

"There is brighter chances that the company might set up its facility in India", adds Patil. In addition to this, the company has received extremely encouraging response in India in past 16 months, said Patil.

The setting up of the facility that the company plans to execute preferably in India, would have a production capacity of 20 million pieces of photochromic lenses per annum, while the company's global production capacity at all its existing six facilities amounts to 75 million pieces per annum.

The company looks at the growth potential in India as the country has the highest number of cataract cases in the world. Approximately nine million people in the country go blind due to cataract.

The major cause of cataract is the glare and Ultra Violet (U/V) sun rays affecting the eyes. The company claims that plastic photochromic lenses help in protecting the eyes against glare and U/V rays and reduce the chances of cataract or any other eye diseases.

The company claims that presently it commands a lion's share of about 60 percent of the photochromic lenses sold in India.

According to the company, there are hardly any major players in plastic photochromic lenses in the Indian market.

Currently, the company is sourcing plastic photochromic lenses for Indian market from its manufacturing unit in Thailand and Philippines. This attracts 15 percent customs duty.

"It is an additional cost incurred on imports", said Patil. If the company sets up its unit in the country, lenses would become cheaper by 15 per cent.

As plastic photochromic lenses are very expensive in the country, the company is currently eyeing only the metro cities or cities having individuals with high purchasing power. But with a production facility in India, the company could target tier II and tier III cities as the lenses would become cheaper compared to the present price range.