In the Indian automobile industry, which is also currently witnessing revolutionary changes with technological advancement, Bosch, the largest auto parts supplier in the country, made its larger presence by commissioning its electronic control unit (ECU) for diesel and gasoline fuel injection systems at Naganathapura in Bangalore. Bosch has already invested Rs. 60 crores in this new facility, and proposes an additional investment of Rs. 68 crores next year. In terms of facilities provided, the new plant is most environment friendly.
So far the company was meeting the requirements of all the major OEMs in the country by importing ECUs from its overseas operations, including those in China and Europe. With an appreciable increase in automobile production in India since last few years, Bosch realised the urgent need to establish its indigenised manufacturing unit for ECUs at Naganathapura not only to meet the growing demand of its customers but also to ensure a quicker delivery at lower cost. However, there is no compromise on the quality of Bosch ECUs produced in India. The Indian production facilities indeed conform to the world standard similar to the company plants in Hungary, Mexico and China.
For its Indian operations, Bosch has set up its fully-owned subsidiary, Bosch Automotive Electronics India Pvt. Ltd., which was inaugurated on May 26 in the presence of the company’s valued customers.
Addressing a press conference after the inauguration, Dr. Bernd Bohr, Chairman, Automotive Group, and Member, Board of Management, Robert Bosch GmbH, Germany, said it was an important milestone for the company to establish indigenised production facilities for ECUs. This is in line with the Bosch goal of expanding indigenous operations in India initiated in 2006 with the introduction of the Common Rail Injection System (CRI). The Bangalore and Nasik plants are very well part of the company’s European export activities.
Electronic control units from Bosch integrate all the required functions of modern engine control in a single unit. The main components of the ECU are micro-controller with software applications and power stages. Functions are integrated in a compact chip set which controls the fuel injection and ignition for motor vehicles. The software for the ECU was specially developed for the requirements of emerging markets. The first batch of ECUs produced at Naganathapura will be supplied for Tata’s Nano car.
According to Mr. Bohr, as a strong believer in R&D; activities, Bosch has increased its R&D; spend from 10.2 per cent in 2007 to 12.3 per cent of total sales in 2008 despite general shrinkage in global demand. Since a negative impact on sales is feared in the current year, the company has worked out an innovative strategy by applying for more patents and by introducing new products. It will be also be introducing electronic brake system (EBS) through its Pune facility by the end of this year.
He explained that more patents and new products introduced are among the main factors that have driven the growth of the company all along. With 32,500 associates in R&D; worldwide, the company has to its credit 3,850 patent applications in 2008, which is the highest so far. In emerging markets, it keeps enhancing local management, development and production. In automobile technology, it employs more than 25 per cent of its 25,000 engineers worldwide in Asia/Pacific region.
Mr. V.K. Viswanathan, Managing Director, Bosch Ltd., in his address, said that in 2008, the company, with six subsidiaries and an employee strength of 18,030, achieved a turnover of Rs. 6,477 crores. Established in 1951, Bosch Ltd. emerged as the largest auto component supplier in India. All its plants are TS 16949 and ISO 14001 certified.
The company has been recognised as a major contributor to the Indian industry with several Awards, including those for innovation. Some of the Bosch innovations in the low price vehicle segment include gasoline EMS, diesel CRS, glow plugs, starters & generators, brake system, etc. With local competency, together with global strength, Bosch is the undisputed market leader in many fields.
Though the financial global meltdown has affected the overall growth of the Bosch Group, Bosch Ltd. achieved an eight per cent growth in 2008 as compared to 2007. While the company registered a CAGR of 20 per cent in sales, exports grew by 18 per cent, Mr. Viswanathan added.
Dr. Volkmar Denner, Member of the Board of Management, Robert Bosch GmbH, in his brief address, said the Bosch automotive electronics has multiple applications in the automotive sector. Since the Bosch strategy is local for local production with Indian application engineering, it has localized production of ECUs too. The Naganathapura plant is expected to produce 2.5 million pieces of ECUs with an employee strength of 300 until 2012.
Innovative products
Over the past few years, Bosch has been introducing its innovative products to the Indian market as part of its increased commitment to India. The company has already introduced the Common Rail Injection System for diesel vehicles, which has revolutionized the Indian diesel car and SUV markets. The system will also be made available in the commercial vehicle segment in India in the near future.
