The German engineering and electronics giant Bosch group, which completes 96 years of business in India, looks to achieve double digit growth in the country, focusing on its new digital age strategy '3S' - where it uses sensors, software, and services.
"We want to outperform the market. When India grows at 7-8 per cent, Bosch looks at a performance better than the market. We expect to grow in double digits in the next couple of years," said Andreas Wolf, Joint Managing Director, Bosch Ltd.
In the last 10 years, BSE-listed Bosch Ltd's market capitalisation has grown five times to Rs 58,000 crore. The company's revenues grew by 5.6 per cent to Rs 11,870 crore in the last financial year.
But net profit fell by 21.27 per cent to Rs 1,370 crore. Profit before tax fell by 2.57 per cent to Rs 2,040 crore. It posted Rs 3,201 crore revenues in the second quarter, registering a rise of 13.8 percent. The net profit increased by 18.9 per cent to Rs 420 crore.
In India, Bosch set up its first manufacturing operation in 1951, which has grown over the years to 18 manufacturing sites, and seven development and application centers.
Bosch Group in India employs over 31,000 associates and generated consolidated revenue of about Rs 19,204 crore in 2017, of which Rs 13,790 crore came from third party. The group in India has close to 18,000 research and development associates.
On the sidelines of Bosch's Beyond Mobility 2.0 biennial event, Wolf told Business Today that the volatility is high in India.
"In a rising scenario, the spike would be 30-40 per cent. During downturn, the growth can go muted. Agility is most important in this scenario," says Wolf.
The volatility, uncertainty, complexity and ambiguity (VUCA) of this new global environment collectively poses unique challenges for the engineering companies as it constantly presents newer roadblocks in an ever-changing environment, he added.
"We are focused on providing locally adaptable products to the Indian market. Affordable and quality products do work well in this market. Proximity to the customer and maintaining relations with them are the other important factors. We brought even the application engineers closer to the customer, in addition to the sales force. For instance, Bosch's power tools business division introduced a concept of 'zero distance to the user'. We want to hear the feedback from the horse's mouth. What do they want to do? What are their concerns?" Wolf said.
Mobility solutions contributes 85 per cent to Bosch's business in India. Industrial technology, consumer goods, and energy and building technology are the other major verticals.
"We want to balance it a little more. We have been trying it for years, but not successful," he said. In the electromobility business, Bosch is a broadly diversified automotive supplier. Its electromobility portfolio includes key components of the electrical powertrain, such as the electric motor, power electronics, and battery systems.
Bosch Home Appliances division plans to invest 100 million euros over the next four years into personalised solutions, brand building, strengthening its technology center, and setting up a robust refrigerator factory in India.
This investment comes five months after Bosch said it will invest Rs 1,700 crore in the next three years in India to build artificial intelligence-enabled products and modernise manufacturing facilities.
"With localised offerings in the household appliances area, Bosch is transforming itself into a hardware-plus company," Soumitra Bhattacharya, Managing Director, Bosch Limited and president, Bosch Group, India said.
Bosch is developing solutions based on artificial intelligence, blockchain, sensors and other futuristic technologies to build sustainable ecosystems across industries for the future.
Bangalore is one of the global innovation centers for Artificial Intelligence (AI) solutions and transformations are being driven through Bosch's "3S" strategy. Bosch looks to accelerate the growth with India-specific innovations, larger distribution networks, consumer centricity and by entering new market segments.
"Our business is in a process of profound transformation from a hardware focus to models that focus more on services and data. We have the capability to develop greenfield technology that can power industries in a new-age manner," said Bhattacharya at its Beyond Mobility 2.0, a biennial flagship event.