Bosch India all set to invest Rs. 2,200 Cr in 2012 - 2013

Reinforcing its commitment to the Indian market, the Bosch Group in India - a leading manufacturer of automotive components, announced an investment of Rs 2,200 crores for India. Announcing this at a press conference in New Delhi, Dr Bernd Bohr ' Chairman of the Automotive Group and Member, Board of Management Robert Bosch GmbH, stated that the sum would be spent over a period of two years and used for capacity augmentation, diversification and new technology development.

Expansion

On the technology front, Bosch experts in India are set to assume worldwide responsibility in the area of software engineering support for electronic control units (ECU). Their development work will focus on ECU for vehicles with conventional drivetrain technologies as well as hybrid and electric vehicles. More than 800 engineers in Bangalore and Coimbatore have already been recruited primarily for this task. In the past year, Bosch in India has also been successful in working on fuel economy technologies that are relevant for India and other emerging markets. Technologies such as the Value-Motronic engine management platform, which was developed for emerging markets in cooperation with Indian engineers, have also had a positive influence on the Bosch Group's global development processes. According to Dr. Bernd Bohr,"Indeed, our joint efforts with Indian engineers have provided us with valuable insights into how Bosch technologies can be made more cost-effective across the board. Making Bosch automotive products accessible and affordable everywhere is one of our central aims and we see our India team contributing significantly on this front. "

Significant amount of work is being implemented in the field of safety systems. By 2015, 90% of all new vehicles worldwide will be fitted with Antilock Braking System (ABS). In India, ABS is currently featured in about 13% of locally sold vehicles. With capability to support OEMs' needs for Antilock Braking Systems, Bosch in India produces some 300,000 Antilock Braking Systems per year at its facility in Chakan, Pune. These are used for Passenger Cars, SUVs and UVs. In addition to this, Bosch also offers an affordable ABS for two-wheelers in India.

Commenting on the investment plans for Bosch in India, Dr. Bohr said, "Despite uncertainties due to global political and economic developments the Indian economy has continued to develop strongly and is expected to see steady growth. In the automotive sector in particular, Bosch expects the number of cars per 1,000 inhabitants in India to rise to 35 by 2025, up from 12 at present. This year alone, automotive production in India is set to grow about 11 percent. In contrast, the number of vehicles produced globally is expected to increase by 3 to 5 percent in 2012. In the backdrop of such developments, Bosch would like to contribute and be part of the India growth story. This investment along with plans for expansion and development of new technologies are testimony to our commitment to the Indian market."

Increase in India sales and associate strength

In 2010 Bosch Group sales in India stood at Rs 9270 crores. As per preliminary figures, sales of Bosch Group in India is expected to touch Rs 11,000 crores in 2011 resulting in year-on-year growth of about 20 percent. In terms of head count, Bosch in India added 4000 more associates in 2011 taking its present associate strength to 25,000. It is expected that Bosch in India will have 32,000 associates by the end of 2013.

Bosch Worldwide

Globally the Bosch Group sales touched 50 Billion euros in 2011, up from 47.3 billion euros in 2010. In Automotive Technology, Bosch expects a business volume of 30 billion euros, compared with 28.1 billion euros in 2010. In 2011, Bosch invested around 3.3 billion euros for research and development globally in automotive technology alone.

Bosch Group's growth in 2011 is also reflected in its global workforce. By the end of the year, the Bosch Group's headcount had grown by 15,000, taking associate numbers to 300,000. In the Automotive Group, headcount grew by some 10,000, to 177,000.

Global Technological Focus: cleaner, safer and more economical Bosch is continuously working to make driving cleaner, safer and more economical. With broad range of technical measures, globally Bosch will reduce the fuel consumption of both diesel and gasoline engines by 30%. The turbo-charging of downsized engines is an important example. Such technologies comply with evertightening fuel economy and emission standards. Globally Bosch plans to sell some 7 million gasoline direct injection systems in 2013 ' 3 times as many as in 2010. The sales of its common-rail diesel-injection systems are set to rise from 9 million units in 2010 to over 12 million units in 2013.

Paving the road to e-mobility

Globally Bosch invests some 400 million euros annually in e-mobility and offers a full portfolio of products ranging from motors and power electronics to auxiliary systems. Its successful entry into the e-Bike drives market saw it deliver 70,000 units this year. With its joint venture for lithium-ion batteries, Bosch is working to increase the range and reduce the cost of this key component. By 2013, Bosch will be working on 21 projects for 13 automakers. While a major shift towards purely electric driving isn't expected until the middle of the next decade, Bosch anticipates that transitional solutions will gain acceptance much before. It thus expects good opportunities for the plug-in hybrid, whose battery can be charged simply from a wall socket. The all-electric range is sufficient for day-to-day urban trips. Bosch thus sees strong potential for small evehicles, especially in megacities.

Driver assistance and vehicle networking

In the coming years, complex driver assistance systems based on radar and video sensors will make the vision of accident-free, autonomous driving a reality. Bosch has dedicated over 600 developers to developing technologies in this field. While demand for driver assistance systems and internet-based mobility solutions is currently concentrated in established markets, Bosch companies in India are making an important contribution to developments in these areas too. With over 8,500 associates, Robert Bosch Engineering Services and Business Solutions provides a full range of software for automotive electronics applications, and has customers in all of the world's major economic regions.

In his closing words, Dr. Bohr said that Bosch activities in India clearly demonstrate the importance of drawing on regional strengths. "Our strong global presence has enabled us to cope with an increasingly volatile business environment. And our deep local roots have helped us establish lasting partnerships with our Indian customers".

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