Bosch to invest 100 million euros in India this year

Global automotive component and services supplier Bosch is hugely bullish on India. As is known, the economic growth forecast of around 7.5 percent in 2016, as well as reforms and other government programs, have made the country a global growth driver. This momentum is also benefiting Bosch among a host of other global automotive suppliers.  

With a share of 27 percent of the global Bosch sales, the Asia-Pacific region remains an important growth region for the Bosch Group. And within APAC, India is fast growing as the market with the largest growth potential.

“Our business in India developed very well in the first quarter of 2016,” said Peter Tyroller, member of the board of management of the Bosch Group responsible for Asia Pacific, at the 60th annual meeting of the Indo-German Chamber of Commerce in Düsseldorf yesterday.

In 2015, the company increased its sales in the Indian market to 1.7 billion euros (Rs 12,994 crore) which translates into double-digit growth of 11 percent in rupee terms and more than 25 percent in euro terms. “For the years ahead as well, we see immense growth opportunities in India. This is why we plan to invest more than 100 million euros (Rs 764 crore) in India in 2016,” Tyroller added. Some of this amount will be invested in the company’s manufacturing plants for automotive components in Bidadi and Nashik, as well as in expanding the research centre in Bangalore. Between 2011-2015, Bosch has invested more than 680 million euros (Rs 5,198 crore) in India. Currently, it has 15 manufacturing plants across the country.

Bosch expects that the use of intelligent and connected solutions in manufacturing will play an increasing role in India. This is the Bangalore plant, where the company uses manufacturing data to shorten throughput times in the testing of diesel injection pump.

Two-wheeler market and connectivity new growth drivers

The Indian automotive market, in particular, continues to offer great potential for Bosch. “The business with gasoline injection systems and automotive aftermarket components grew significantly last year,” Tyroller said.

In 2015, Bosch was posted double-digit growth rates with security systems, packaging machinery, and energy-efficient technology for buildings.

The company also sees opportunities in India’s booming two-wheeler market. And over the long term, the government’s ‘Make in India’ initiative, which aims to advance industrialisation in the country and modernise production, will offer more and more opportunities in the area of connectivity. Bosch is already a leading global provider and user of connected industry, with Industry 4.0 solutions also being applied at its Indian manufacturing facilities.

The high demand for qualified workers in India was one of the topics discussed during the annual meeting of the Indo-German Chamber of Commerce  in Düsseldorf. In India, Bosch has been offering dual education based on the German model for 55 years now – with training now being provided in nine trades. “Our commitment to developing talent is part of our localisation success story in India. It is also the basis for business growth in this dynamic region,” Tyroller said.

Since it was founded in 1961, the Bosch Vocational Centre in Bangalore has trained over 2,500 apprentices. With over 30,000 staffers across India, Bosch is one of the most important employers in the country.

Bosch’s largest development centre outside Germany is also in India. At two locations in southern India – Bangalore and Coimbatore – it employs over 14,000 research and development associates. One of their areas of focus is developing software solutions for the internet of things. Bosch is increasingly becoming a major provider of software-related jobs, also in India. In the current year, the company plans to recruit an additional 3,500 university graduates in the country.

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