Nov 2, 1999|
Bausch & Lomb India: Will it survive?
Ever since Bausch & Lomb Inc. sold off its eyewear business, which includes brands like Rayban, Killer Loop, Arnette, Revo to the US$ 1.6 bn Italy-based Luxottica Group, the future of its Indian subsidiary has come under a cloud.
Bausch & Lomb India (B&L India) is engaged in the businesses of 'Eyecare' (55% market share) and 'Vision care' (sunglasses, soft contact lenses and lens care solution). B&L India enjoys 70% market share in soft lenses and 60% share of the lens solution market. The company was a BIFR case and only turned around in FY97. In FY99, its accumulated losses stood at Rs 22 m (Rs 158 m in FY98).
Till now the Luxottica Group has sent no indication of where Indian operations of Bausch stand in its list of priorities. Till now it has not bought Bausch's 44% stake in India. The reasons are not hard to find. B&L India is Bausch's only other listed company (except USA). So, to make it a 51% subsidiary Luxottica will have to make an open offer to the public as per SEBI guidelines. With B&L India contributing barely 2% to Bausch's global turnover, India must surely be way down its immediate concerns.
Another complication in India is that both eyewear and eyecare businesses are integrated. They have common administration, distribution and franchisees. So the take over by Luxottica will be a complex exercise.
In terms of B&L India’s future, even if Luxottica takes over Bausch’s Indian eyewear business, the real issue will be whether B&L India be able to sustain itself sans its eyewear business, which contributed over 70% to its FY99 revenues.
These concerns have also affected its performance in the second quarter ended September 30, 1999. The company’s net profit slid by a whopping 98% to Rs 1 m during the period, compared to Rs 36 m earned in 2QFY99.
More Views on News
Aug 9, 2017
While GST implementation brought down volumes and profitability in the short run, Marico remains optimistic in the long run.
More Views on News
Aug 17, 2017
A small-cap Indian company with high-return potential and blue-chip-like stability is set to supplant the Chinese players in this niche segment.
Aug 10, 2017
Bill connects the dots...between money and growth, real money and real resources, gold and cryptocurrencies...and between gold, cryptocurrencies, and time.
Aug 16, 2017
The IT Sector could be in an uptrend till February 2019. Are you prepared to ride the trend?
Aug 10, 2017
Bitcoin hits an all-time high, is there more upside left?
Aug 16, 2017
Ensure your financial Independence, and pledge to start the journey towards financial freedom today!
Copyright © Equitymaster Agora Research Private Limited. All rights reserved.
Any act of copying, reproducing or distributing this newsletter whether wholly or in part, for any purpose without the permission of Equitymaster is strictly prohibited and shall be deemed to be copyright infringement. LEGAL DISCLAIMER:
Equitymaster Agora Research Private Limited (hereinafter referred as 'Equitymaster') is an independent equity research Company. Equitymaster is not an Investment Adviser. Information herein should be regarded as a resource only and should be used at one's own risk. This is not an offer to sell or solicitation to buy any securities and Equitymaster will not be liable for any losses incurred or investment(s) made or decisions taken/or not taken based on the information provided herein. Information contained herein does not constitute investment advice or a personal recommendation or take into account the particular investment objectives, financial situations, or needs of individual subscribers. Before acting on any recommendation, subscribers should consider whether it is suitable for their particular circumstances and, if necessary, seek an independent professional advice. This is not directed for access or use by anyone in a country, especially, USA or Canada, where such use or access is unlawful or which may subject Equitymaster or its affiliates to any registration or licensing requirement. All content and information is provided on an 'As Is' basis by Equitymaster. Information herein is believed to be reliable but Equitymaster does not warrant its completeness or accuracy and expressly disclaims all warranties and conditions of any kind, whether express or implied. Equitymaster may hold shares in the company/ies discussed herein. As a condition to accessing Equitymaster content and website, you agree to our Terms and Conditions of Use, available here
. The performance data quoted represents past performance and does not guarantee future results.SEBI (Research Analysts) Regulations 2014, Registration No. INH000000537.
Equitymaster Agora Research Private Limited. 103, Regent Chambers, Above Status Restaurant, Nariman Point, Mumbai - 400 021. India.
Telephone: +91-22-61434055. Fax: +91-22-22028550. Email: email@example.com. Website: www.equitymaster.com. CIN:U74999MH2007PTC175407