Bosch upbeat on India operations

Robert Bosch (SEA) Pte Ltd, the world's largest auto-parts manufacturer, is all set to raise it earnings to 33 per cent from its Indian operations of its automotive aftermarket sales segment.

Talking to Business Standard, Odd Joergenrud, vice president of automotive aftermarket sales-Asia Pacific, Robert Bosch, said, "Indian automobile market is the fastest growing market in the world and we are hopeful to increase our Indian operation share to total turnover to 33 per cent from the present 25 percent."

Presently, India contributes 25 per cent to the turnover of the company's Asia Pacific operation. The company is also focussing on its ASEAN operation due to the growing automobile usage.

K Ravi, regional sales director India and SAARC, automotive aftermarket division, Motor Industries Co. Ltd, said, "Currently we are earning approximately ¤ 100 million from Indian operation". Motor Industries is the subsidiary of Robert Bosch in India.

Adding to this, Joergenrud, said, "Our turnover from aftermarket sales from Asia Pacific is ¤400 million and we want to double this figure in 5 years". The company is focusing on India and Chinese market presently and expects double digit growth from India. Explaining the rational for targeting Indian market, Joergenrud said that the company hardly expected any large scale growth coming from the automotive markets of Japan, Australia and South Korea.

"There is a limitation in growth of automotive aftersales from Japan, Australia and S Korea as these markets have become stagnant due to decline in demand of automobiles and frequent changes in technology," said Joergenrud.

According to the company, there is lesser chance of business coming from these countries as most individuals posses a car and also the spare parts replacement business seems a dim possibility due to the high-end automobile technology usage. "With better technology there is less chance of breakdown," he adds.

Robert Bosch GmbH has agreed to increased its takeover offer for Pacifica to $2.20 per share from $1.92 per share, as informed by Pacifica Group Ltd to Australian Stock Exchange.

Bosch's offer of $2.20 per share is a 15 per cent increase over the previous offer of $1.92 and represents a 40 per cent premium to the volume weighted average price of Pacifica share traded. Pacifica makes auto parts for General Motors Corpl in the US.

When asked how the takeover of Pacifica will impact the company's aftermarket sales operation in Asia Pacific, he said that it will have positive impact on Asia Pacific market as Pacifica has strong presence in conventional brake, light weight calibus and brake parts. Which can be made available to the automobile manufacture in Asia Pacific market.

However, he clarified that the matter related to supply of Pacifica's auto product to Asian Pacific market will be cleared later once the takeover process is completed in a positive.

The company has set high expectation from Indian market, as the car population in India is growing at 18 percent while the automotive aftermarket sales market is growing at a rate of 20 percent.