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Home arrow News arrow Business News arrow Bosch Limited registers 13% growth in 2007
Bosch Limited registers 13% growth in 2007 Print E-mail
Written by Anand   
Friday, 07 March 2008
Bangalore: Bosch Limited (formerly Motor Industries Co Ltd.); the flagship of the Bosch Group in India, has registered a growth of 13% in the year 2007. The company posted net sales of Rs. 42,796 million in 2007 growing at 13% over the previous year. The Profit Before Tax (PBT) stood at Rs.8,560 million which is 20% of net sales. The Profit After Tax (PAT) stood at Rs. 6,092 million, which is 14.2 % of net sales.

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 is also on the growth path and has a big plan to enter the Pharma packaging segment.

Announcing the company’s financial results, Mr. V. K. Viswanathan, Managing Director, Bosch Limited, 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 Limited has grown in sales by 13% in 2007 over 2006, which is more than the market growth, this growth was however below our expectations due to this slowdown”.

Sector wise Break-up

Automotive Technology

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%, Starter and Generator business grew by 22% and Gasoline business by 5%. New products in these businesses as well as capturing of additional market share contributed to this growth. The Automotive Aftermarket business grew by more than 9 % supported by a double digit growth in the Inland Aftermarket.Focus was given to further strengthening of the distribution channels. Apart from achieving growth in the traditional business areas, the company also focused on new growth products like Batteries, Wiper blades, Diagnostics.

Blaupunkt, a leading market player in the in-car entertainment business in India, witnessed a sales growth of 26%.

Industrial Technology

The company’s packaging technology business grew by 17%. With a view to tap the expanding Pharma segment, the company shifted its packaging machinery plant to Verna, Goa.

Consumer Goods & Building Technology

The Power Tools Division grew by 26% 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 India.

The business of Bosch Security Systems India grew by 34% thereby increasing the market share. Bosch products for security, safety and communication are found in large infrastructure projects like airports, metros and stadiums among others.

Exports

In 2007, the company exported goods worth Rs. 6,730 million which is an increase of 7% over last year. The growing export market is a strong indicator of the customer confidence that Bosch enjoys in the overseas market.

Road Ahead

Bosch automotive technology aims to give customers a cleaner and greener environment. The modern diesel engine is an environmentallyfriendly drive unit. On an average, contemporary diesel engines with common rail systems require 30 percent less fuel than cars with gasoline engines. In addition, the carbon-di-oxide emissions are approximately 25 percent lower. Bosch is working with manufacturers to design diesel engines meeting the stringent future emissions legislation such as the Bharat Stage 4 and beyond (introduction planned in 11 cities by 2010). Consequently, the end customer gets to drive a fuel efficient, fun to drive car without making a dent into the environment.

The growth potential seen in the Indian auto market is attracting most of the global majors to set up operations in India. The country 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. 26500 million till 2010. A majority of this has already been invested in setting up the first indigenous common rail manufacturing facility.

Apart from the expansion of common rail production, this money will also be invested in the manufacturing of gasoline systems components, Anti lock Braking System, and electronic control unit.

“With this huge investments, in a variety of technologies and products, Bosch is committed to bring clean, safe and economical technologies to the Indian market”, said Mr. Viswanathan.

 
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