Bosch plans Rs 1,800-cr India drive

RUN UP TO 8th AUTO EXPO 2006

Three-year expansion drive to focus on diesel variants, more components to be outsourced.

German automobile component and accessories maker Bosch Group today said it planned to invest Rs 1,800 crore in its four Indian operations over the next three years. This is an extension of a previously announced investment plan of Rs 1,000 crore from 2004-07.

"India is a growth economy and we are confident that the steep upward trend will continue," said Bernd Bohr, member, board of management, Robert Bosch Gmbh.

The four companies in the group are Motor Industries Company Ltd (Mico), Robert Bosch India Ltd, Bosch Chassis System India Ltd (formerly Kalyani Brakes) and Bosch Rexroth India Ltd.

A major part of the investment will go towards expansion of the group's auto business with a special focus on modern diesel technology.

The group is also increasing strength at its captive information technology unit, Robert Bosch India, apart from the research and development unit of Mico, which caters to the domestic market.

The group also plans to increase outsourcing of components by 13-14 per cent compared with last year, when it outsourced parts worth Rs 400 crore. The company exports products like fuel injection, auto electricals and braking systems to Europe, North America and the far-east.

Apart from two and three-wheeler brakes, Bosch Chassis Systems will also manufacture four-wheeler brakes.

"We are establishing local manufacturing capacities in India. The last year saw the beginning of the production of injector components for the common-rail system in Nashik. Manufacturing of complete injectors will follow in 2007. The first common-rail system will come off production line by mid-2006 from Bangalore," Bohr said.

Bohr said for Bosch, India was an important market and was expected to expand further in the coming years. "Sales from our Indian subsidiaries grew by 25 per cent in 2005 to nearly Rs 3,800 crore. In 10 years, the growth has quadrupled," he added.

Even as it is moving to manufacture common-rail diesel systems in India, the company supplies these to Mahindra & Mahindra and Hyundai.

"In 2005, we delivered around 40,000 common-rail systems in India and in 2010, this is likely to go up to 600,000. The share of diesel engines in the Indian vehicles market will rise from 29 to 37 per cent," Bohr said.