Bosch, a leading automotive component maker, is planning to invest Rs2,200 crore in the next fiscal in capacity expansion, diversification and technology development.
It is working on several new projects and looking at expanding its plants in Nashik, Jaipur, Ahmedabad, Coimbatore and Bangalore to cater to the growing auto industry demand.
While its new hydraulic manufacturing plant is coming up in Sanand, Gujarat, a greenfield electrical drive plant in Chennai will begin operations in 2012.
“On an average, we are looking at an expansion of 25-30% of the capacity,” said V K Vishwanathan, managing director, Bosch. About 10-12% of the total investment will go for research and development.
Bernd Bohr, Bosch Automotive Group chairman, said, “Despite uncertainties due to global political and economic developments, the Indian economy has continued to develop strongly and is expected to see a steady growth.” In the automotive sector, Bosch expects the number of cars per 1,000 inhabitants in India to rise to 35 by 2025 from 12 at present. This year auto production in India is set to grow about 11% as against 3-5% growth expected globally in 2012, the company said.
The company is also looking to hire more to boost R&D. “Last year alone we added close to about 4,000 people and will continue to add more engineers this year too,” said Vishwanathan.
With India becoming a hub for engineering and R&D, the company is also looking at stepping up exports. “In 2011 our exports grew by almost 30% and have crossed Rs1,000 crore mark for Bosch Ltd alone,” said Vishwanathan.
Bosch group sales in India are expected to rise 20% to touch Rs11,000 crore in 2011.
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