Bosch Ltd

Last modified by Asif Farooqui on 2021/01/10 05:21


In India, Bosch (NSE:BOSCHLTD) is a leading supplier of technology and services in the areas of Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. Additionally, Bosch has, in India, the largest development center outside Germany, for end to end engineering and technology solutions.1

The Bosch Group operates in India through thirteen companies, viz, 

  1. Bosch Limited
  2. Bosch Chassis Systems India Private Limited
  3. Bosch Rexroth (India) Private Limited
  4. Robert Bosch Engineering and Business Solutions Private Limited
  5. Bosch Automotive Electronics India Private Limited
  6. Bosch Electrical Drives India Private Limited
  7. BSH Home Appliances Private Limited
  8. ETAS Automotive India Private Limited
  9. Robert Bosch Automotive Steering Private Limited
  10. Automobility Services and Solutions Private Limited
  11. Newtech Filter India Private Limited
  12. Mivin Engg.Technologies Private Limited
  13. Precision Seals Manufacturing Limited. 

In India, Bosch set-up its manufacturing operation in 1951, which has grown over the years to include 18 manufacturing sites, and seven development and application centers.

Bosch Group in India employs over 31,500 associates and generated consolidated sales of about ₨.19,996 crores* (2.54 billion euros) in fiscal year 2020 of which ₨. 14,011 crores*(1.78 billion euros) are from consolidated sales to third parties. The Bosch Group in India has close to 15,650 research and development associates. In India, Bosch Limited is the flagship company of the Bosch Group. It earned revenue of over ₨. 19,996 crores* (2.54 billion euros) in 2020.


Company History

In 1886, Robert Bosch founded the “Workshop for Precision Mechanics and Electrical Engineering” in Stuttgart. This was the birth of today‘s globally operating company. Right from the start, it was characterized by innovative strength and social commitment.2

1922        First Bosch Service Workshop established in India

1951        Motor Industries Company Pvt Ltd Established

1953        Production of Spark plugs SCP started

1969        2nd plant in Nasik established

1960        Started exporting to BRIC nations

1974        Rexroth operations started in Ahmedabad

1989        3rd plant in Naganathapura established

1998        New subsidiary Robert Bosch India Ltd., established

2000        Technical Center India established for R&D

2003        Security Systems business begins

2008        MICO renamed as Bosch Limited

2009        New subsidiary RBAI established

2010        Assembly of Antilock Braking System (ABS) started in RBIC

2012        New subsidiary RBBD established

2015        Bosch Diesel Systems plant in Bidadi is inaugurated

2016        RBIC Inaugurates new Chassis Systems plant in Maharashtra

2017        ChiP produces 5 millionth power tool – Marble cutter.

2018        Launch of i4.0 for shop floor efficiency

2019        Inauguration of BidP Phase2

2020        BS VI Sensors Started providing BS VI products and solutions to all OEM’s


The Bosch Group encompasses a number of different brands which are tailored to individual market requirements, and whose products and services are also designed to improve quality of life.

  • Bosch
  • Bosch Car Service
  • Bosch fexroth
  • Dynacord
  • Electro-Voice
  • Freud Tools
  • RTS Intercoms
  • Robinair
  • Sia Abrasives
  • Telex
  • Zexel

Manufacturing Facilities

  • Bidadi (Karnataka)
  • Nashik (Maharashtra)
  • Jaipur (Rajasthan)
  • Naganathapura (Karnataka)
  • Gangaikondan (Tamil Nadu)
  • Chennai (Tamil Nadu)


Industry Overview


The auto industry faced a severe demand slowdown coupled with stagnant wages and liquidity constraints. Vehicle sales and production plunged leading to job losses, dealership closures and reduction in production capacity utilization across automobile and auto ancillary manufacturers. Sagging vehicle sales showed signs of revival during third quarter of 2019-20 for the auspicious festive season. New model introductions were instrumental for the slight recovery in passenger car & two-wheeler sales through this period. Auto industry continued to struggle with high inventory levels. Fourth quarter of 2019-20 witnessed timely start of production transition from BSIV to BSVI for On-Road vehicles.3

Freight capacity was freed-up with implementation of axle norms in the commercial vehicle segment. Transportation efficiency improved with implementation of Goods & Service Tax and E-Way bill creating an excess freight capacity of approximately 20%. Subdued freight rates and low freight movement due to slow-down exerted pressure on the fleet operators holding them from making new vehicle purchases. Reduced resale value of trucks affected replacement demand. Electric Three wheelers cargo applications grew, but fast depreciation of electric Three Wheelers curtailed finance options. Overall, the segment’s high dependency on Non-Banking Financial Companies further led to production decline of 47% in Heavy Commercial Vehicle, 21% in Light Commercial Vehicle and 10% in three wheeler segments.

Legislative norms paved way for superior vehicle technology with introduction of frontal airbag, parking sensors. Infotainment in cars are increasingly becoming an extension of the smartphone with newage connectivity features and cloud based services. Retail sales were higher, led mostly by Utility Vehicle segment that jumped more than 20% during the festive period. With a weak consumer sentiment and high vehicle price, Passenger Cars and Utility Vehicle production declined by 15%.

Tractor segment continued on TREM III norms, although, with high inventory levels and muted demand in rural and construction segments. Uneven spread of rainfall damaged crop output, hampering cash flow in the rural market. High discounts and attractive finance schemes improved retail sales during the festive season. Tractor segment production declined by 15%.

Subdued consumer sentiment, higher inventory of motorcycles compared to scooters and postponement of buying decisions led to decline in Two Wheeler segment. Retail sales was better off during the festive season influenced by cash discounts, loyalty and exchange programs. Electric Two Wheeler sales grew with FAME II impetus enabling battery technology transition from lead acid to lithium ion. Overall Two Wheeler production declined by 14%.



The Indian Professional Tools market is estimated to be around INR 18 billion by value in year 2019 (without factoring COVID-19 impact) and is expected to grow at a CAGR of 6%. This is in line with the estimated rise of the infrastructural projects and expansion of the manufacturing industry to drive the market. The market trend clearly points to increasing sales of professional power tools, the move from corded tools to cordless tools and shift from nickel cadmium to lithium ion powered tools within cordless tools.

The Building technology (Security technology) market in India is growing at 5% driven by the need to secure Critical Infrastructure, Government Buildings, Public and Private Spaces. The technology trends in this space are the evolution and maturity of IP Convergence, analytics and seamless integration. The market is also preparing itself to deal with the challenging threats and changes driven by fast changing hardware and software. The industry is also maturing driven by the renewed scope in Regulation and Bottoms-up desire to feel safe and secure.

The overall slowdown in the economy has resulted in slowing demand for Solar PV EPC projects and Energy Efficiency solutions from commercial and industrial segment customers. Solar PV projects has seen an upward trend mainly in the Opex model during this period. Energy Efficiency solutions demand is supported by pollution control and energy savings measures adopted by the government agencies and many corporations.

Business Segment

Mobility Business

Powertrain Solutions

The division Powertrain Solutions (PS) combines the strengths of the smart, diversified and sustainable powertrain under the vision PASSION TO MOVE. PS offers integrated solutions in the market segments - Electric Vehicles (EL), Passenger Cars (PC) and Commercial Vehicles / Off-Road (CV/OR) and aims at becoming the No. 1 provider of products and solutions in the diversified powertrain sector ranging from gasoline and diesel injection to electrified drives with battery and fuel cell technologies. PS is pushing ahead with further development of innovative, ecofriendly technologies and systems based on diesel and gasoline. They include engine management systems, fuel supply modules, fuel injectors, pumps, and ignition systems. For diesel systems, the division is developing even more fuel-efficient and eco-friendly injection systems for applications ranging from passenger cars and commercial vehicles of all kinds to industrial power-generation units.

During the year, successful migration to BSVI projects in record development time in collaboration with OEMs to meet stringent BSVI emission norms is a significant milestone.

Overall, Automotive Market during 2019-20 was subdued, mainly due to unfavorable economic conditions. Powertrain Solutions witnessed a 30.2% decline in sales compared to the preceding Financial Year. Within PS division, the Diesel segment witnessed 33.1% decline in sales as compared to last year. Further, the full potential of the BSVI ramp up which was expected from April 2020 is expected to be delayed due to the ongoing COVID-19 pandemic which has affected supply chains, created liquidity problems across customers and also led to manpower constraints.

The exhaust gas sensors are in demand across customers, owing to the stricter emission norms laid down by the government.

The Gasoline Systems division registered a moderate growth of 1.8% over the previous Financial Year. This growth is mainly due to growth in demand in the twowheeler segment, which is expected to continue over the next couple of years. Further, good demand was also seen for ECUs, sensors, connectors and battery products.

In future, the growing working population and expanding middle class will remain the key drivers of growth for the automobile industry as the company look to recover from the slump in the economy created by the COVID-19 pandemic.

Automotive Aftermarket

The Automotive Aftermarket division provides the aftermarket and repair shops across India with a complete range of technology and solutions related to auto diagnosis and repairs, as well as a wide range of spare parts for vehicles and repair solutions, especially for passenger cars and two wheelers. The product portfolio consists of Bosch manufactured products like Fuel Injection Equipment & Spares, Spark Plug, Braking Parts and Filter, as well as products & services like Battery, Starter Generators, Lubricants, Comfort Electronics, Wiper Blades and Lubricant developed and manufactured by other manufacturers. The Automotive Aftermarket division is the largest Independent Aftermarket (IAM) network in India.

During the year under review, the division witnessed a decline in revenue by of 5.4%, amidst of economic slowdown and weak performance of automotive market. However, there were many positive developments in the areas critical for its long-term growth. The division grew in two-wheeler segment of independent aftermarket as it registered the highest ever double-digit growth in exports and saw a steep increase in revenue and volume of cars serviced at its COCO (Company owned Company operated) workshop. As a technology leader in this space, the division acquired multiple BSVI OE projects. The division also implemented significant cost reduction projects at its manufacturing locations, which helped the division to retain its margin during these challenging times. During the year, the division developed an aftermarket sales strategy of demand generation through increased focus on workshops and pull for Bosch products & services in the market. The division also played an important role in the industry’s transition to BSVI emission norms by facilitating the vehicle manufacturers in smooth execution of all the new emission projects.

Business beyond Mobility

The Business beyond mobility sales have declined by 12.3% which was driven predominantly by Power Tool and Bosch Energy & Building Solution Division in domestic market; which contributed to 81.7% of total business beyond mobility during the year under review as compared to 91.3% during the previous Financial Year. However, exports sales of total business beyond mobility decreased by 21.8% as compared to the previous Financial Year.

Consumer Goods - Power Tools

The Power Tools division supplies power tools, power-tool accessories, and measuring technology. The division has an extensive product range aimed at professional users in trade and industry, the DIY market and amateur crafters. One of the division’s focal points is convenient, high-performance cordless tools, and great engineering progress.

During the year under review, the division’s revenue had a decline of 3.9% which is mainly driven by slowdown in economic activities and also onetime order executed in the previous year for Government of Andhra Pradesh for Aadharna Project. The Division aims at reducing the distance to its users and will continue to focus on improving their lives by providing affordable solutions. Its focus on the loyalty program and e-commerce channels for business would also continue to be essential contributors to the overall business growth.


Automobile industry which was reeling under pressure in 2019 has been deeply impacted by COVID-19. Vehicle production was down by 17% in FY 2019-20 and COVID-19 impact is projected to push back the auto industry to 2008 - 2010 levels. Rural is expected to lead the demand recovery driven by better MSPs for the upcoming kharif harvest, increased MNREGA spends in allied business activities and as most of the COVID-19 impact till date has been largely in urban areas. Hence tractors and two wheelers are expected lead the demand recovery. PV segment is deeply impacted considering the discretionary nature of consumption and recovery will largely be expected to benefit from shift in preference towards personal over public mobility. CV segment which experienced the maximum contraction in 2019 is expected to be under significant pressure driven by fall in industrial activity. This segment will benefit if government introduces the scrappage policy. Thus FY 2020-21 is expected to be one of most challenging years for the industry.

Financial Highlights

Sale of products declined by 23% over previous year on a comparable basis and stood at MM INR 89,441. The decrease is influenced by the turbulent automotive market, with various structural and cyclical factors driving the industry.

Sale of services doubled with 120.6% increase over previous year mainly due to the Recognition of income on R&D contracts relating to BSVI projects completed during the year.

Other operating revenue stood at 3,270 MM INR, increased by 54.7% over the previous year. This increase is mainly contributed by Government Grant on the investments in Company’s Nashik Plant under Package Scheme of Incentives.

Other income, which mainly comprises of mark-tomarket gains, profit on sale of marketable securities and dividend income declined by 31.2% over the previous year. Income from net gain on financial assets measured at Fair Value through Profit and Loss (FVTPL) was MM INR. 2,054 for the year under review as against MM INR 3,093 in previous year.

Personnel cost for the year under review was MM INR 12,685 as against MM INR 13,507 of the previous year. The reduction is mainly due to transformation projects and EVR schemes.

The depreciation charge for the year under review was MM INR 3,833 as against MM INR 4,022 during the previous year ended on March 31, 2019. This is mainly contributed by reduction in new investments, including R&D assets, partly offset by the depreciation on leased assets, with the change in accounting standard on Leases (Ind AS 116).

During the year, the Company has made a provision of MM INR. 7,167 towards various restructuring, reskilling, redeployment initiatives and asset impairments. These provisions are in line with the Company’s transformation initiatives and to capitalize on opportunities emerging in electro mobility and other mobility solution businesses.

Tax Expense represents a net charge of MM INR 1,901 in the year under review, as compared to MM INR 7,406 in the previous year. The effective tax rate for the year under review was 20.7% as compared to 31.7% in previous year. The Company has adopted the benefit of lower tax rate of 25.2% including surcharge offered in the finance bill for the Financial Year 2019- 20. The impact of this on the deferred tax asset is recognized in the P&L as a separate item.

Profit after tax declined by 59.3% to MM INR 6,498.2 (excluding discontinued operation, the PAT is MM INR 5,848) in the period under review from MM INR 15,980 in previous financial year.

EPS (basic and diluted) of the Company for Financial Year 2019-20 was INR 220 per share as against INR 525 in FY 2018-19.

As on March 31, 2020, the Authorized Share Capital comprises of 38,051,460 Equity Shares of INR 10 each. The issued, subscribed and paid-up capital is MM INR 294.94 divided into 29,493,640 equity shares of INR 10 each.

Recent developments

Bosch reports consolidated net loss of Rs 64.57 crore for September quarter. 4

November 06, 2020;  Bosch Ltd on November 6 reported a consolidated net loss of Rs 64.57 crore in the second quarter ended September 30. The company had posted a consolidated net profit of Rs 98.40 crore in the same period last fiscal, Bosch Ltd said in a regulatory filing.

Consolidated revenue from operations during the quarter under review stood at Rs 2,479.18 crore as against Rs 2,312.68 crore in the year-ago period, it added.

"The Indian automotive market continues to undergo structural changes. In order to be fit for the future, Bosch Limited has continued investment in its 3R strategy of restructuring, reskilling and other transformational projects. To support this, an additional amount of Rs 400 crore has been provided and disclosed as an exceptional item for the quarter ended September 30, 2020," the company said in a statement.

Commenting on the company's performance, Bosch Limited Managing Director and President of the Bosch India Group, Soumitra Bhattacharya said: "The auto industry is going through a prolonged slump. However, there has been a sequential recovery month over month in segments mainly led by two-wheelers and tractors. The company will witness faster growth if Bosch has the government's support on GST reduction and scrappage policy."

In the second quarter, Bosch Ltd said sales of powertrain solutions business division saw a rise thus helping Bosch Ltd's Mobility Solutions turnover increase by 7.5 percent. The two-wheeler and Powersports business continued to witness double-digit growth during the quarter while business in the beyond mobility segment posted a decline of 4.6 percent.

 "The reduction is on account of decline in business with solar energy and security technologies which are mainly project-driven," it added. On the outlook, Bhattacharya said: "Bosch is closely listening to its employees, customers and other stakeholders to operate efficiently in these times of 'New Normal'. Even in these turbulent times, Bosch is cautiously optimistic of heading towards a break-even for this financial year."

Bosch invests $2 million in Routematic 5

November 09, 2020;; Urban mobility startup Routematic raised $2 million in its latest round of funding from BOSCH at a valuation of $28 million. Routematic plans to use the funding to expand the company’s portfolio of mobility use cases and geographic presence.

Commenting on the investment, Surajit Das, CEO Routematic said, “ Bosch is tremendously proud of what Bosch has accomplished so far. It is its privilege to bring BOSCH on board as an investor and a strategic partner as the company continue innovating and solving for mobility. Routematic will play a central role in determining how big cities handle problems like traffic congestion and environmental issues. This partnership will enable it to build mobility products that are safe, efficient and sustainable.”

He further adds, “At a time when mobility at large is struggling to make a comeback in the post lockdown world, this investment is testament to the fact that Bosch is headed in the right direction. It is a good validation of its hypothesis that urban mobility should be solved using multi-form supply designed around demand from office commuters and then building out for other use cases. The Routematic-BOSCH partnership will generate a lot of synergies and accelerate mobility innovations.”

Routematic recently expanded its mobility portfolio with the launch of large-format shuttle/bus-based transport for the workforce in manufacturing units, augmented with a suite of COVID protection and shopfloor solutions such as contact tracing, and social distancing tools.


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Created by Asif Farooqui on 2021/01/09 12:47
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