Titan Eye Plus has called for a change in the duty structure of spectacle frames to encourage branded manufacturing.
The prescription eyewear division of Titan Industries entered lens manufacturing two years ago for its in-house brand. But it has stayed away from manufacturing frames. The division imports all its frames from Italy, Japan, Germany and China.
“Currently, it is more expensive to manufacture branded spectacle frames in India than to import, due to the central excise that is levied on the end product,” said Mr Jagannath N, Head – Manufacturing and Supply Chain Management, Eyewear Division, Titan Industries.
Branded finished products are levied a central excise of 4 per cent (for frames costing less than Rs 500) to 10 per cent. However, unbranded wholesale frames are charged central excise only on the manufacturing cost. “This is irrational,” said Mr Jagannath.
The duty should be charged on the manufacturing cost and not on the price of the finished product even for branded players, said Mr Jagannath. “Till now there has not been much frame manufacturing in India and most of it is imported. Tweaking the central excise structure will encourage more branded players and retailers to enter the fray. This could eventually make it cheaper for consumers.”
On whether Titan will look into frame manufacturing if this happens, Mr Jagannath said it is “a question of time.”
According to a partner in a prominent Chennai-based optical retail chain, frame and lens manufacturing involves high technology and precision. Currently, there are a few frame manufacturers, mostly based in Gujarat. Among the lens makers, Essilor and Titan are the big players with manufacturing plants in near Bangalore.