Bosch to invest Rs 40 cr

Bosch India, the Indian branch of the Bosch group, a leading power tool manufacturer of the world, will open six new Bosch Systems Specialist Centres (BSS) in places like Jalandhar, Himachal Pradesh, and Jammu to take the number of such centres to 30 in the country.

"The major thrust area of the company will be North India," said Navin Paul, country sales director of Bosch Power Tools, adding the group would also set up its manufacturing plant in Himachal Pradesh or Uttaranchal, the states which give tax exemptions.

The company will spend Rs 35-40 crore on expansion, like installing machine lines in order to manufacture power tools.

The company, which has a strong presence in the power tool market in the country with a 40 per cent market share in the Rs 450-crore hand tool market, is setting up outlets and organising awareness campaigns.

"North India has the potential to capture more than 25 per cent of the market share, which amounts to more than Rs 100 crore", he said, adding that the spurt in industrialisation in the North, especially setting up manufacturing units, had encouraged the company to tap the power tool market.

"The company is in advanced stages of finalising setting up its manufacturing unit in Himachal Pradesh or Uttaranchal," he said. "The plant will be operational by the first quarter of next year and shortly the company will decide on the location," he added.

He said Bosch had a deal with Canara Bank on providing loans on the spot to artisans.

Under the scheme, the company is aiming to support 10,000-15,000 rural artisans comprising carpenters, electricians, plumbers and auto technicians by providing a soft loan of up to Rs 1 lakh towards tools and working capital at a nominal interest rate.