Bosch India

Topics: Automotive industry, Fuel injection, Volkswagen Group Pages: 11 (3057 words) Published: November 4, 2012
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Bosch India
Bosch is a leading supplier of technology and services in the areas of automotive and industrial technology, consumer goods and building technology in India. The Bosch Group operates in India through six companies, viz, Bosch Limited, Bosch Chassis Systems India Limited, Bosch Rexroth India Limited, Robert Bosch Engineering and Business Solutions Limited, Bosch Automotive Electronics India Pvt Ltd, Bosch Electrical Drives India Pvt Ltd. In India, Bosch set up its manufacturing operation in 1953, which has grown over the years to include 13 manufacturing sites and seven development and application centres. The Bosch Group in India employs over 25,000 associates. In India, it generated consolidated revenue of over Rs.11,300 crores in 2011. Bosch Limited is the flagship company of the Bosch Group in India. It earned revenue of over Rs. 8000 crores in 2011. The business sectors of Bosch include Automotive technology, Industrial technology, Consumer Goods and Building Technology, and Engineering and IT services. Vision:

Creating Value, Sharing Values.
To improve the quality of life with Bosch products and enabling customers by maximizing value as an offshore partner in technology and business solutions.


Competitive structure of industry

The Auto Components sector in India registered a strong growth rate of 36.3% as compared to 30.6% growth rate in FY’2010. The revenue growth in the domestic automotive component market can be attributed to the reduction in excise duties on certain vehicles and the grant of 100% foreign investment in the component sector. However, poor market sentiments, increased food & fuel prices and interest rates took their toll, what with the sale of passenger cars in October 2011 falling to the lowest in two years forcing the industry to slash forward looking forecasts. The widening price differential between petrol and diesel has further favoured the demand for diesel cars. This notwithstanding, OEMs continued to launch new models in all market segments especially passenger cars. Overall, the automotive sector was able to sustain double digit growth aided by a solid performance in the first half of the year 2011 and partially aided by stable rural demand. Factors affecting the Industry:

* The auto ancillary industry has been one of the fastest growing sectors in the Indian economy. It has a CAGR of 24% over the last 5 years. It had a sale of Rs 1600 billion in the year 2010-11. * Capacity utilisation rates of the auto ancillary sector as a whole decreased significantly in light of reduced exports and slowdown in the domestic markets. * The industry players had to grapple with the issues of extreme volatility in rupee and input cost and as a consequence, tremendous pressure was witnessed on margins. * In terms of international trade, the auto components industry grew rapidly in both exports and imports over last 5 years.

* The government has taken many initiatives to promote foreign direct investment (FDI) in the industry. * Automatic approval for foreign equity investment upto 100% of manufacture of automobiles and components is permitted. * The automobile industry has been de-licensed.

* There are no restraints on import of components.
* To identify the necessary activities, the DHI (Development of Heavy Industries) has setup the Development Council for Automotive and Allied Industries (DCAAI) * The Governments infrastructure initiatives such as the Golden Quadrilateral project and NHDP (National Highway Development Program) also have an indirect favorable effect on the industry.

The auto components industry is a very technology-intensive industry. Historically, India’s strength in exports has lied in forgings, castings and plastics. But this is changing with more...

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