Motor Industries Company Ltd. (MICO) has been renamed Bosch Ltd. The entire brand folio of Bosch Ltd. now changes to Bosch except in the automotive aftermarket where the brand name MICO will continue to be used.
“It is very positive for our future in India and a clear commitment to this market that all our business activities are now known under the Bosch name”, said Dr. Albert Hieronimus, Chairman, Bosch Ltd.
MICO was incorporated on November 12, 1951, with its head office then located in Chennai, earlier known as Madras. Initially the company was engaged in trading activities only. At that time fuel injection equipment made by Bosch was being imported from Germany by many traders. The business was gradually taken over by MICO.
With the construction of the first factory building in Bangalore in 1953, the company undertook manufacture of spark plugs. In the following years, the manufacture of sparkplugs, filters, single-cylinder fuel injection pumps, nozzle-holders, and elements & delivery valves was gradually undertaken in technical collaboration with Robert Bosch GmBH. The head office of the company was shifted to Bangalore in July 1954, and Robert Bosch GmbH began to participate financially in the company activities.
Over the years, MICO has acquired the expertise to design and develop fuel injection equipment and spark plugs to suit the specific requirements of manufacturers. The modern development department functions in close collaboration with Robert Bosch GmbH.
MICO is a very strong brand name in the Indian automotive industry, more particularly in the aftermarket. This is probably the reason why Bosch has decided to retain the MICO brand name for the automotive aftermarket business. The company sells a range of products under the MICO brand, including spark plugs, filters, lubricants, batteries, wipers, automotive bulbs, horns and many more products.
“Our customers will see the entire value chain of Bosch in our products and services fully backed by our global know-how network”, said Mr. V. K. Viswanathan, the newly appointed Managing Director of Bosch Ltd.
Bosch has prepared the road map for its business in India, which is one of the key growth markets for Bosch globally, and the company will unleash the power of its global technology to provide solutions to the Indian automotive industry.
Safe and clean technology
To comply with strict emissions standards in India, which are following the lead set by Europe, Bosch offers both efficient gasoline injection systems and advanced common-rail systems. Bosch opened its first manufacturing facility for high-pressure common-rail pumps in 2006 in India. Since August 2007, the company has been manufacturing common rail injectors locally.
In 2007, Bosch made as many as 100,000 common-rail systems in India. In 2010, this figure will be as high as some 1.3 million, and it is expected that the two-million mark will be reached in 2013. Increasing volumes are also to be seen in all the other products Bosch manufactures in India. By 2010, 1.5 million starters and two million alternators will be manufactured in India compared to around half-a-million of each currently. The projections for 2010 suggest that 4.7 million Indian vehicles will be fitted with Bosch brakes.
Alongside environmental protection, accident prevention is an urgent priority on Indian roads. To satisfy this need, Bosch is promoting advanced braking systems in India. In 2006, 76 per cent of all new cars worldwide were fitted with ABS, but only eight per cent in India. This figure is set to double by 2012. Bosch is preparing for this increase in demand, and plans to roll out ABS production in the country at the end of 2008.
India is emerging a hub for low-priced vehicles. Bosch wants to play an important role in this dynamic and growing market. The company engineers around the world are working on new technologies for low-price vehicles.
Between now and 2015, annual sales of cars are projected to grow by six per cent worldwide and 13 per cent in India. For Bosch, the development focus here is above all on cost-efficient management systems for gasoline and diesel engines, as also on alternators and brakes. Bosch “Value Motronic” is one example.
In this new management platform for gasoline engines, intelligent software is the key to providing maximum functionality at minimum cost. In the area of low-price vehicle equipment, Bosch aims to generate global sales of a good one billion euros by 2010.
Expansion plans
The rapid growth in automotive production in India, which is likely to double from its current 2.2 million to 4.4 million units by 2010, poses a great challenge. Bosch’s response to India’s strong economic growth and increasing motorization is to expand local development and manufacturing. From 2005 to 2008, the company will have invested more than Rs. 1,800 crores in the country and an additional Rs. 850 crores is to be invested by 2010. Apart from the expansion of common rail diesel production, this money will also be invested in the production of gasoline systems components from 2008. Moreover, it is planned to start local ABS production at the end of 2008 and the production of electronic control units in 2009.
Joint venture set up
Robert Bosch GmbH and Igarashi Motors India Ltd. (IMIL) have set up a joint venture. The new company will start operations in the second half of 2008 for developing, manufacturing and selling DC motors and systems for wiper and HVAC, engine cooling and window lift applications for the fast growing Indian automotive market. The joint venture will be headquartered in Chennai. It will be a 51:49 joint venture in favour of Bosch. By the end of 2008, the joint venture is expected to employ roughly 100 associates.
The Chennai-based Igarashi Motors is a $70 million company. It develops, manufactures and sells DC motors for application in the automotive and non-automotive fields. IMIL commenced regular operations in India from 1995 and its majority shareholding is by the Igarashi family from Japan which has been in the business of electric motors for over 50 years.
“With this joint venture, we are expanding our range of products manufactured locally in India. In this way, we offer our local customers the best possible support in the further motorization of India,” said Mr. Viswanathan.
Dr. K.K. Nohria, Chairman of Igarashi Motors India Ltd., said: “Technologically, Igarashi and Bosch are a perfect fit, with each one’s strength complementing the other. Together, we want to exploit the market potential of DC motors and other automotive components in the Indian market.
