Bosch registers 13% growth in 2007

- Automotive technology business registers a robust growth
- Power tools and security technology gains more market share
- Strategic plans to tap the pharma packaging segment

Bosch, formerly Motor Industries, the flagship of Bosch Group in India, registered a growth of 13% in the year 2007. The company posted net sales of Rs 42,796 million in 2007 growing at 13% over the previous year. The profit before tax (PBT) stood at Rs 8,560 million which is 20% of net sales as against 21.1% in 2006. The profit after tax (PAT) stood at Rs 6,092 million, which is 14.2 % of net sales as against 14.5% in 2006.

Bosch`s automotive technology business saw healthy growth during the year whereas power tools and security systems divisions business gained considerable market share. The packaging technology business is also on the growth path with the company planning to enter the Pharma packaging segment in a big way.

Announcing the company`s financial results, V.K. Viswanathan, managing director, Bosch, said, ``the year 2007 saw a significant slowdown in certain segments of the automotive market notably tractors, two and three wheelers and heavy commercial vehicles. While Bosch sales grew by 13% in 2007 over 2006, which is ahead of the market growth, this growth was however below our expectations due to this slowdown``.

Segment wise performance

Automotive technology

In spite of mixed development in the automotive market, the company could still achieve good growth overall in the automotive OE business. The diesel business grew by 12%, starter and generator business grew by 22% and gasoline business by 5%. New products in these businesses as well as capturing of additional market share contributed to this growth. The automotive aftermarket business grew by more than 9% supported by a double digit growth in the inland aftermarket. Focus was given to further strengthening of the distribution channels. Apart from achieving growth in the traditional business areas, the company also focused on new growth products like batteries, wiper blades and diagnostics.

Blaupunkt, a leading market player in the in-car entertainment business in India, witnessed a sales growth of 26%.

Industrial technology

The company`s packaging technology business grew by 17%. With a view to tap the expanding pharma segment, the company shifted its packaging machinery plant to Verna, Goa.

Consumer Goods & Building Technology

The power tools division grew by 26% and saw the introduction of 25 new tools covering all the important segments of the market. The new product `Blower` was entirely designed and developed in India for the world market. After the success of the `Bosch Vahaan` last year in South India, the initiative was expanded to North India. Through this mobile initiative, Bosch has been able to enhance the skills and livelihood of self employed rural artisans in India.

The business of Bosch Security Systems India grew by 34% thereby increasing the market share. Bosch products for security, safety and communication are found in large infrastructure projects like airports, metros, stadiums, etc.,

Exports

In 2007, the company exported goods worth Rs 6,730 million, which is an increase of 7% over last year. The growing export market is a strong indicator of the customer confidence that Bosch enjoys in the overseas market.

Road Ahead

Bosch automotive technology aims to give customers a cleaner and greener environment. The modern diesel engine is an environmentally friendly drive unit. On an average, contemporary diesel engines with common rail systems require 30 % less fuel than cars with gasoline engines. In addition, the carbon-di-oxide emissions are approximately 25% lower. Bosch is working with manufacturers to design diesel engines meeting the stringent future emissions legislation such as the Bharat Stage 4 and beyond (introduction planned in 11 cities by 2010).

Consequently, the end customer gets to drive a fuel efficient, fun to drive cars without having to make concessions on the environmental front. The growth potential seen in the Indian auto market is attracting most of the global majors to set up operations in India. The country is also poised to become the hub for low priced vehicles. Bosch sees this as a good opportunity for its business. To further strengthen its role in India, the company has already announced an investment of Rs 26.50 billion between 2005 and 2010. ``The company is committed to bring clean, safe and economical technologies to the Indian market``, said Viswanathan.

Founded in 1951, Bosch has grown over the years to become India`s largest auto component manufacturer. It is also one of the largest Indo German companies in India. Access to state of the art technologies from Bosch and a commitment to world-class quality have made it the country`s largest manufacturer of Diesel Fuel Injection Equipment and one among the largest in the world. It is headquartered in Bangalore. Additionally Bosch also has in India, the largest development center for end to end engineering and technology solutions outside Germany.

Shares of the company gained Rs 83.1, or 2.13%, to settle at Rs 3,975.5. The total volume of shares traded was 5,589 at the BSE (Wednesday).