Bosch Ltd., erstwhile Motor Industries Co. Ltd., the flagship of the Bosch Group in India, registered a growth of 13 per cent in 2007. It posted net sales of Rs. 42,796 million in the year growing at 13 per cent over the previous year. While profit before tax stood at Rs. 8,560 million, which is 20 per cent of net sales, profit after tax stood at Rs. 6,092 million.
Bosch’s automotive technology business saw healthy growth during the year and power tools and security systems divisions business gained considerable market share. The packaging technology business, which is also on the growth path, has a big plan to enter the pharma packaging segment.
Announcing the company’s financial results, Mr. V.K. Viswanathan, Managing Director, Bosch Ltd., said: “The year 2007 saw a significant slowdown in certain segments of the automotive market, notably tractors, two and three-wheelers and heavy commercial vehicles. While Bosch Ltd. has grown in sales by 13 per cent in 2007 over 2006, which is more than the market growth, this growth was, however, below our expectations due to this slowdown”.
In spite of mixed development in the automotive market, the company could still achieve good growth overall in the automotive OE business. The diesel business grew by 12 per cent, starter and generator business by 22 per cent and gasoline business by five per cent. New products in these businesses as well as capturing of additional market share contributed to this growth.
The Power Tools Division grew by 26 per cent and saw the introduction of 25 new tools covering all the important segments of the market. The new product ‘Blower’ was entirely designed and developed in India for the world market. After the success of the “Bosch Vahaan” last year in south India, the initiative was expanded to north India. Through this mobile initiative Bosch has been able to enhance the skills and livelihood of self-employed rural artisans in the country.
In 2007, Bosch Ltd. exported goods worth Rs. 6,730 million, which is an increase of seven per cent over 2006. The growing export market is a strong indicator of the customer confidence that the company enjoys in the overseas market.
The growth potential seen in the Indian auto market is attracting most of the global majors to set up operations in the country. India is also poised to become the hub for low-priced vehicles. Bosch sees this as a good opportunity for its business.
To further strengthen its role in India, the Bosch Group has committed an investment of Rs. 26,500 million till 2010. A major portion of this has already been invested in setting up the first indigenous common rail manufacturing facility. Apart from expansion of common rail production, money will also be invested in the manufacturing of gasoline systems components, anti-lock braking system, and electronic control unit.
Mr. Viswanathan observed: “With this huge investment in a variety of technologies and products, Bosch is committed to bring clean, safe and economical technologies to the Indian market”.
