Lenskart to Establish World's Largest Eyewear Manufacturing Facility in Telangana

IPO-bound Lenskart is all set to create a global milestone with its plan to build the largest eyewear manufacturing facility in the world in Telangana. The Gurugram-based eyewear giant has committed an investment of approximately ₹1,500 crore to establish this state-of-the-art facility, which will be located at Fab City.

The Telangana government and Lenskart recently signed a Memorandum of Understanding (MoU), as announced by Telangana IT and Industries Minister Duddilla Sridhar Babu on X (formerly Twitter).

“Lenskart would be setting up the world's largest eyewear manufacturing facility in Telangana with an investment of around ₹1,500 crore. The facility will produce eyewear, lenses, sunglasses, as well as accessories and other products catering to India, along with exports to other markets in Southeast Asia and the Middle East,” Sridhar Babu stated.

Strategic Highlights of the Telangana Facility

Boost to Job Creation and R&D

Minister Sridhar Babu further elaborated that the plant would be established in Fab City, with land allocation finalized and set to be handed over to Lenskart this week.

“The plant will create around 2,100 jobs, and there are purported discussions around an R&D plant being set up. This is a testament to our policy that ensures speed and ease of business for companies,” Babu added.

Strengthening Domestic and Export Markets

The facility will not only serve India but also act as a production hub for exports to Southeast Asia and the Middle East. This move aligns with Lenskart’s efforts to deepen its domestic market penetration while scaling its international footprint across Asia.

Lenskart’s Growth Trajectory

Valuation Soars Amid Robust Financial Backing

Lenskart has attracted significant investor interest, with its valuation recently increased to $5.6 billion by Fidelity. This reflects a 12% rise in fair value, driven by the company’s strong performance.

In June 2024, Lenskart raised $200 million in secondary investments from Temasek and Fidelity. Notably, the company was valued at approximately $5 billion in this funding round, marking a significant leap from its $4.5 billion valuation during a $100 million funding round in 2023.

Lenskart Revenue Milestones and Global Expansion

Lenskart has achieved an annual revenue run rate of $1 billion for the current financial year. The company continues to expand with over 2,500 stores worldwide, including 2,000 outlets in India, supported by its innovative click-and-mortar business model.

Competitive Landscape

Globally, Lenskart competes with industry leaders such as Titan Eyeplus, Specsmakers, Vision Express, Warby Parker, and the Luxottica Group. In India, it dominates the market by offering an omni-channel customer experience, blending online platforms with physical stores.

Lenskart's Strategic Acquisitions Driving Innovation

Scaling Operations Through Technology

Lenskart has been proactive in scaling operations through strategic acquisitions. Notable deals include the purchase of:

• Tango Eye, an AI-based computer vision startup, enhancing its tech capabilities.

• Japanese eyewear brand Owndays, acquired in a $400 million deal in 2022, strengthening Lenskart’s global footprint.

Upcoming Valuation Surge

Speculations suggest that Lenskart’s valuation could rise by 20% to $6 billion if ongoing discussions for a $200–300 million secondary share sale materialize.

Telangana’s Role in Lenskart’s Expansion

The Telangana government’s business-friendly policies have played a pivotal role in attracting Lenskart to set up its largest facility in the state. This collaboration underscores the state’s commitment to fostering innovation and economic growth through strategic partnerships.

Conclusion

Lenskart’s ambitious plan to build the world’s largest eyewear manufacturing facility in Telangana is a testament to its growth trajectory and commitment to innovation. With an investment of ₹1,500 crore, job creation for 2,100 individuals, and a focus on domestic and export markets, this facility is poised to drive both regional development and the company’s global expansion. As Lenskart continues to grow, it is reshaping the eyewear industry with cutting-edge technology, strategic acquisitions, and a robust business model.