Carl Zeiss India, a manufacturer specialising in optical systems and optoelectronics, plans to hire an additional 800 individuals with the launch of the first phase of its largest vision factory in the world, expected to be operational by the end of 2024, according to a senior executive of the company.
Speaking to businessline, Shreyas Kumar, Director, and CFO, said that the 34-acre facility is being built in Devanahalli Airport (Bangalore International Airport) with a total investment of Rs. 2500 crore and will eventually provide employment opportunities to close to 5,000 people. “This is also our agreement with the government because we have signed up under Invest in Karnataka scheme. In addition, we are in discussion to purchase an additional 9 acres of land closer to the new facility.
“The first phase will be ₹1,750 crore investment , the rest will come in a few months. This will probably be the largest factory in the world and clearly shows how critical India is as a market and as a potential for growth for the group.”
In 1998, Carl Zeiss entered the Indian market and subsequently established its initial manufacturing unit in 2012. Currently, the company operates four units in India, with plans to consolidate three existing units in Bengaluru in the upcoming facility. Notably, all its factories are export-oriented, except for the Delhi factory. The company exports over 60 per cent of its manufacturing output to various regions, including Europe, Asia, the Middle East, and Africa.
R&D
In addition to manufacturing, it also does R&D work out of the country. Its R&D centre is primarily focused on advancements in vision and medical technology businesses. Additionally, the company exports its R&D services to global markets.
Expanding its R&D resources is a key area of investment for the company. “Currently, we have 300 people, we plan to add 100 people annually, and maybe by 2025 we will cross thousand people in this just in the software R&D part,” he added. Globally, 15 per cent of the company’s revenues are dedicated to R&D activities.
In India, it employs 1400 people across all its operations and recorded ₹1,500 crore in revenues last year. According to the company, India is a market for everything now, with all its businesses registering growth.
“India itself is growing at almost double digits. We have grown extremely well in the last few years. In fact, we grew 15 to 20 per cent year on year over the last three years despite Covid. We should close at about ₹1,800 crore this year (October 2022–September 2023),” said Kumar.
The German manufacturer operates five business verticals in the country, including MED (medical technology), which alone generates revenues to the tune of ₹800-900 crore in India; Industrial Quality Solution (IQS), which manufactures metrological equipment, dual-use equipment; research microscopy (RMS); VIS (vision care); and COP (consumer products) and (Cinema and Photography lenses, Binoculars, sports optics)
Regarding introducing products from its global portfolio, Kumar said, “We are keeping our fingers crossed to bring some medical equipment manufacturing to India, at least to start with the assembly. This is why we are setting aside almost 10,000 square meters for medical equipment manufacturing in this new factory.”
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Published on July 5, 2023
