Bosch to invest Rs 850 cr to ramp up capacity

Mumbai: Global auto component major, Bosch Group, the parent company of the listed Motor Industries Co (Mico), will invest Rs 850 crore by 2010 in ramping up capacity and adding new facilities.

This will take its final investment to Rs 2,650 crore in a span of five years starting 2005.

The company will set up engineering and manufacturing facilities for gasoline systems, electronic control units and ABS (anti-lock braking systems) between 2008-09.

The group is targeting a robust annual growth of 20-25 per cent in turnover in the next 3-4 years. This will take its annual sales to nearly Rs 9,000 crore by 2010, from Rs 5,700 crore currently, including exports.

In addition, Mico will now be rechristened Bosch Ltd, subject to approval of the shareholders and registrar of companies. Mico is all set to get an Indian head – V K Viswanathan – from February 1. Viswanathan, currently the joint managing director, will replace Albert Hieronimus, the current managing director.

Bernd Bohr, chairman, automotive group, Bosch, said, “India’s dynamic growth is clearly reflected in our company’s performance. Our response to India’s strong economic growth and increasing motorisation is to expand local development and manufacturing.”

As Indian companies experiment with new class of cars, the sub-compact, ultra low-cost car, the company is looking to grab a significant share of the segment which includes the Tata Motors’ Rs 1-lakh car and similar projects of other manufacturers. Currently, the company has an agreement to sell engine components for Tata Motors’ Rs 1 lakh car.

Mico is targetting to hike the production of common rail units (used in diesel engines) to 2 million units by 2013 from 100,000 units now.

According to a study done by the group, almost every second car sold in the country will be a diesel car three years from now.

Diesel cars will have a 45 per cent market share by 2010, from 30 per cent currently. Projections for 2010 by Mico suggests 4.7 million Indian vehicles will be fitted with Bosch brakes.

As Asia remains the fastest growing market in the world, the group is targetting a revenue generation of ¤7.4 billion from here, which will be 16 per cent of its worldwide revenue of ¤46 billion.

India will add more than ¤1.5 billion by 2010.

Between now and 2015, annual car sales will grow by six per cent worldwide and 13 per cent in India, a study said.