Realising that the restructuring will hardly have any negative effect on the Indian operations, speculators are retracting. The scrip has recovered smartly in the last couple of sessions, closing at Rs 91.15. In the last two days trading volumes surged to 6 lakh and 2 lakh shares a day as against the daily average of 2000 to 2500 shares.

According to a dealer with a leading brokerage house, ``The earlier fall in the scrip price was unwarranted based just on parent's proposal of strategic evaluation of its eyewear business.'' There were fears that the company will become a shell company as the parent proposes to sell/spin off its eyewear unit.

Though the annoucement of strategic changes was seen as anegative signal in the domestic market, on the New York Stock Exchange the stock had shot up from $ 40 to $ 57, its 52-week high. In the overseas market, the Bausch & Lomb's stock is enjoying a high discounting of 67 after the announcement of its intentions to hive off the fashion eye wear segment.

Bausch & Lomb worldwide is transforming into a technology-based health-care company for the eye, so that it could focus its full attention on leveraging the growth potential and tremendous synergies among its vision care, surgical and pharmaceutical businesses. Bausch & Lomb's future success will be driven by breakthrough in new products based on technological innovation, and by leveraging the significant strength of the Bausch & Lomb name with consumers around the world. The company plans to launch new product pipeline in cataract surgery and ophthalmic pharmaceuticals. At present the company's businesses include soft and rigid gas permeable contact lenses, lens-care products, premium sunglasses, ophthalmicsurgical and pharmaceutical products. The company is advantaged with some of the most respected brands in the world starting with its name, Bausch & Lomb (R), and including Ray-Ban(R), Arnette(TM), SofLens66(TM), Boston(R), Killer Loop(R), ReNu(R), Revo(R) and Storz(R). The company has annual revenues of approximately $ 2.5 billion and employs more than 15,000 people in 35 countries. But marketmen in India had been skeptical about the hive-off of eyewear division as B&L India derives 70 per cent of its business from eyecare division.

Thus the parent's plan of selling-off this business would have meant that the company starts afresh on restructuring and establishing a new line of business. Even the sale of eyewear division was not expected to yield more than Rs 80-150 crore. However analysts dismiss such fears. On the contrary, they expect the company to grow at a much faster rate as there is immense potential in the eyecare business. Besides, analysts point out that the restructuring exercise would not takeplace in India in the near future. According to an analyst with a leading research outfit, ``In the event that the global major B&L does decide to sell off its eye-wear business, it does not immediately imply that the same divestment may be forced upon the Indian company.'' The essence of the whole restructuring excercise is commercial/business considerations. In India the eyewear business is on the rising chart, B&L India might not be asked to hive off this division, he adds. Thus he does not expect a blanket, across-the-board exit in the eyewear business by B&L in India.

Agrees Rajesh Jain of Pranav Securities, ``An overseas divestment by an MNC major has often not been implemented in Indian subsidiaries -- given the dominant position, business strength and growth prospects of the product category in an emerging consumer market like India.'' For example ICI has sold explosives business worldwide, but explosives are one of the cash cows of ICI (India). Again, Uniliver has sold its speciality chemicals andanimal feeds business. But both form an important part of HLL's portfolio, he further adds.