Bosch to expand India footprint with Rs 650 cr investment

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Updated: May 30, 2015 2:07 PM

Bosch, a leading global supplier of technology and services and part of Germany’s Bosch Group, has firmed up plans to invest close to Rs 650 crore in 2015 to expand its footprint.

Bosch, a leading global supplier of technology and services and part of Germany’s Bosch Group, has firmed up plans to invest close to Rs 650 crore in 2015 to expand its footprint.

Last fiscal, Bosch had started the process of setting up three new plants, namely Bidadi (diesel systems), Gangaikondan (gasoline systems) and Chennai (power tools).

Bosch’s Bidadi plant, where the company’s Bengaluru plant will be moved to, is scheduled for inauguration in the third quarter of 2015.

Speaking to media persons, after releasing the company’s earning performance, here on Friday, Steffen Berns, MD, Bosch & president, Bosch Group India , said the Rs 650-crore investment will go towards setting up a new plant at Bidadi, some 35 km from Bengaluru and converting the current plant into a full-fledged technology centre and software development park.

“The work is underway at Bidadi and we will be able to move the entire manufacturing line to the new place later this year,” he said. The company had made capital investments of around Rs 500 crore in 2014. Bosch’s power tool’s plant in Chennai is designed to support a wide range of products for the Indian market.

Berns said that the company will recruit around 3,000 associates, out of which a major chunk will be engineers. Replying to questions on the labour unrest the company faced, he said though it had gone through some issues on industrial relations (IR), the company had arrived at fair settlements. “Also, we have been able to pro-actively put in place measures to comply to industrial norms which will also lead to enhancement of productivity,” he said.

In India, Bosch is in the areas of mobility solutions, industrial technology, consumer goods, and energy and building technology. Additionally, Bosch has in India the largest development centre outside Germany, for end to end engineering and technology solutions. The Bosch Group operates in India through nine companies.

Bosch Q4 net hit hard by depreciation

Bosch has posted an 11.9% drop in net profit to Rs 287 crore for the January- March quarter against a profit of Rs 326 crore in the same quarter last fiscal. The lower profit was mainly due to higher depreciation on a higher asset base and changes in taxation for marketable securities.

According to the company, this effect was partly offset by effective measures to control costs.

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