Forex

German auto component giant Bosch is betting big on India. The company has committed investments of Rs 2,300 crore till 2010 in India. It is bringing in many advanced products and technologies that are currently available only in European markets.

These products include anti-lock braking systems (ABS), electronic stability programmes (ESP) that prevent vehicles from skidding on wet surfaces, direct injection systems that improve fuel efficiency, and second-generation common rail diesel systems that are being tested on the Tata Nano.

In ABS and ESP, Bosch hopes to become one of the largest suppliers in India by March next year after production of these products begins at its Chakan facility.
Managing director V K Viswanathan said though ABS is not mandatory for vehicles in India, multinational car companies are installing it not only in luxury cars, but also small cars like Hyundai i10. “We are setting up a dedicated facility at Pune for catering to the demand.”

Currently, Hyundai sources ABS systems from Bosch’s South Korean arm and Honda from Bosch worldwide. The new Toyota Corolla may soon source these systems from Bosch India.

On second-generation common rail diesel systems, Viswanathan said the Scorpio CRDe 2.2 and Swift Dzire cars already use Bosch’s systems in India. The company is modifying these for the Tata Nano, with supply beginning next year. He said the company is contemplating a foray into ultra quiet alternators and multimedia car navigation systems. The former may be manufactured at Bosch’s facility near Bangalore.
The group has four companies in India — Bosch Ltd (earlier Mico), Bosch Rexroth, Bosch Chassis and Bosch Engineering and Business Solutions. The group’s turnover last year was $1.3 billion.

Viswanathan said he expected the company’s topline to grow 20-25% year-on-year. Of the Rs 2,300-crore investment it has planned, Rs 850 crore has been pumped in during the last two years.

Bosch’s auto component business contributes 82-84% to its topline. But its non-auto businesses are growing at a much faster clip of 30-35%, he said. The non-auto businesses include electronic power tools, security technology, packaging machines, hydraulics and pneumatics and packaging machines.