STM Assignment Workbook

Company: BOSCH INDIA

SUBMITTED TO:

Section: B Group : 5

Prof. Brajaraj Mohanty

UM15067 Anshuman Mohanty

UM15071 Abhishek Singh
UM15072 Ashutosh Nanda
UM15076 Chandan Kumar
UM15110 Shifa Shrivastav

1 | Page

Contents
1

Executive Summary........................................................................................................................................................... 4

Industry Overview.............................................................................................................................................................. 5
2.1

Nature and Size of the Industry................................................................................................................................ 5

2.2

Key Growth drivers for the Industry......................................................................................................................... 8

2.3

Identification of Critical Success Factors (CSF)...................................................................................................... 9

2.4

Industry Benchmarks................................................................................................................................................ 10

PESTEL Analysis................................................................................................................................................................... 13

2.6

Porters Five Forces Analysis................................................................................................................................... 15

2.5

Competitive Landscape............................................................................................................................................. 16

2.6

Key trends and future developments..................................................................................................................... 17

Company Overview.......................................................................................................................................................... 19
3.1

Company background................................................................................................................................................ 19

3.2

Timeline with key milestones and their strategic impact................................................................................... 20

3.3

Vision, Mission, Goals, and Strategic Themes...................................................................................................... 28

3.4

Key Product and Service Portfolio.......................................................................................................................... 29

Driver information systems............................................................................................................................................ 32

Engineering Services:...................................................................................................................................................... 35
3.5

Core Competencies of the firm................................................................................................................................ 36

3.6

Business Model of the organization........................................................................................................................ 38

3.7

SWOT Analysis............................................................................................................................................................ 42

2 | Page

Bosch India: Financial SWOT Analysis............................................................................................................................... 42

3.8

Competitor Analysis (identify competitors).......................................................................................................... 43

3.8.1
4

Based on Financial indicators............................................................................................................................ 43

Future Growth Strategy for the organization.............................................................................................................. 44

4.1

Portfolio Analysis....................................................................................................................................................... 44

4.2

Companys Strategic Roadmap for future............................................................................................................. 45

4.3

Product Market Investment Strategy..................................................................................................................... 46

4.4
IOE

Re-imagining the Organization with the transformed business model or Use-case based on SMAC and
48

3 | Page

1 Executive Summary
The Automotive Industry in India is booming especially in the last decade and it has immense investment potential. India has
grown into a large automotive market particularly for Japanese OEMs while the European and Americans have also entered for
the long haul. India however due to the recent economic slowdown witnessed weak auto sales which impacted consumer as
well as OEM sentiment.
The project on Automotive Industry with focus on Bosch India Ltd. highlights the important issues that have been in the lime
light since the very long time. The report captures the history and Indian scenario, industry structure, market share of different
companies, important regulatory bodies, analysis of future challenges of the industry etc. This report also focuses on the
strategic approach by Bosch Ltd. to stand strongly in the competitive market. Boschs marketing strategies are analyses using
various models like SWOT analysis, BCG Matrix, Ansoffs matrix, porters five forces etc. The outcomes of these models are
analysed to find out the various aspects like companies position and competitors position in the market. The report also
analyses the different strategic options available to the company under the different market condition.
We believe henceforth India auto story will now be driven by four factors :
a) Pent up demand (low sales last 2-3 years),
b) Reducing food and fuel inflation (down 600 bps to 9.4%/ down 400 bps to 4%) from peak)
c) Income growth due to improved business climate,
d) Lower penetration into households (e.g. 14 per thousand in Passenger vehicles).
We believe the Indian automotive market could witness ~15% CAGR FY14-17E on the back of the demand improvement. From
auto component makers perspective besides, the aforementioned reasons would also lead to higher content per car and
consumers up-trading to higher quality & safety and increased features.
Auto sector to benefit greatly from Make in India! The governments has laid out a vision statement towards ushering India as
a global manufacturing hub via the Make in India campaign. It has been accepted well across the board notably from auto
component behemoths like Bosch Ltd. At present auto sectors contribution to GDP remains at ~7%, leads the manufacturing
sector, thus we believe it would greatly benefit from this specialized focus. Global auto components market is valued at
~US$800billion; of which India contributes ~ 5% share at ~$38 billion. In this context it is little wonder that large automotive
companies like Volvo, VW, GM, Bosch, Magna are investing into the Indian automotive market with not only the view of a large
market but as well as a global manufacturing hub.
We believe that auto-component players are well poised to leverage operating benefits from the cyclical turnaround in auto
sales. The Indian ancillary industry, as per the Automotive Component Manufacturers Association (ACMA) estimates, stands at
~$38 billion.

4 | Page

2 Industry Overview
2.1 Nature and Size of the Industry
History and Evolution of the
industry

As domestic demand for motorcycles and passenger cars expanded since the 1980s,
small and medium enterprises (SMEs) entered into the rapidly expanding market of
auto components. Although large enterprise with foreign and technical collaboration
with foreign companies have maintained major share of critical components, SMEs
which started business in the 1980s and 1990s, have grown. Some of them graduated
from SMEs and became large enterprises. In the 2000s, new entry decelerated.
Necessity of high technology raised initial investment amount and hiked entry barrier.
Exports of auto components to replacement market increased in 2000s. Many SMEs
Concentrates on only exports. In addition to SMEs, tiny enterprises undertaking the
machining of components and catering to domestic replacement market are facing
severe price competition. In fact, number of establishments in the unorganized sector
which is employing less than ten workers declined. Competition might have excluded
the tiny enterprises. Pune and Chennai were traditionally clusters of auto component
industry. After Maruti factory was set up, industrial area was developed for its suppliers.
Delhi National Capital Region (NCR) became another cluster. Multi-national enterprises
(MNEs) established their factories in the clusters to utilize cluster network.
Automotive component industry of India is one of the rising industries with huge growth
prospects. Starting from a low key supplier to the domestic market to one of the
emerging players in auto components in Asia-India is seen as a significant player in
global automotive supply chain.

Key Consumers of this industry

and their changing needs

5 | Page

The Indian auto-components industry can be broadly classed into the organized and
unorganized sectors. The organized sector caters to the original equipment
manufacturers (OEMs) and consists of high-value precision instruments while the
unorganized sector comprises low-rated merchandise and caters mostly to the
aftermarket category. India is now a supplier of a range of high-value and critical
automobile components to global auto makers such as General Motors, Toyota, Ford
and Volkswagen, amongst others.

The requirements in the automotive components industry have changed a lot since its
inception. Automobile from a very simplified structure of a body, wheels, mechanical
steering, etc. To todays requirement which consists of airbags, antilock braking
system, Electronic stability program, Electric steering, infotainment to many more
innumerable factors. With the advent in technology the needs have changed. There is a
cut throat competition among players in India and also throughout the world.
Stage in the Industry Life cycle

The auto component industry is in a growing stage now despite of its stagnation in the
past.
The Indian auto component industry has registered a growth of 11% during FY15,
clocking a turnover of Rs. 2.34 lakh crore ($ 38.5 billion) as per the findings of the
Automotive Component Manufacturers Association of India (ACMA) industry
performance review for the fiscal.
The industry has also seen a CAGR of 11 per cent over the last six years.
This data represents the entire supply from the auto component industry in India to the
on-road and off-road vehicle manufacturers and the aftermarket in India as well as
overseas. The data also includes that of captive suppliers to the OEMs and the
unorganized & smaller players. Despite a challenging 2013-14, the auto component
industry bounced back, to grow at 11 per cent in 2014-15. The auto component
industry in India is expected to scale $ 100 billion in turnover by 2020 with exports to
grow in range of $ 35-40 billion. During the last fiscal several macro headwinds
obstructed the growth in the industry including flagging vehicle sales, high capital
costs, high interest rates and slowing down of investment in manufacturing. The
industrys focus on exports, quality and various cost saving initiatives has helped it
weather the weak business environment leading to a double-digit growth

Total Available Market Size

(National and Global)

6 | Page

The Indian auto component industry is expected to register a turnover of US$ 66 billion
by FY 1516 with the likelihood to touch US$ 115 billion by FY 2021 depending on
favourable conditions, as per the estimates of Automotive Component Manufacturers
Association of India (ACMA). In addition, industry exports are projected to reach US$ 12
billion by FY 1516 and add up to US$ 30 billion by FY 2021.

Exports in the sector grew by 4.4 per cent to touch US$ 9.69 billion in 2013, as per data
provided by ACMA. Auto component makers expect robust growth in the months to
come with continued rise in car sales in the past five months
The global market size of automotive component industry is about 620 billion euros.

2.2 Key Growth drivers for the Industry

Key Growth drivers

Rationale

1. Indian population overall likely

move up the income curve by 2021.

As the lower-middle class dwindles from 460m to 290m, and the emerging-middle,
middle, and upper-middle classes increase in size as the economy move from
developing to develop one. Auto industry in India is likely to benefit from this growth as

7 | Page

aspirations of the majority of the middle class includes owning a car.

2. Growing automobile industry and
hence autocomp industry

3.Robust growth in auto component

By 2017 Indian automobile industry is likely to become third largest in the world and
will account for more than 5 % of global vehicle sales.
Turnover of Indian auto component sector stood at USD 40.6 billion in FY-2012-13 ;The
industry is expected to reach USD 115 billion by FY2020-21

4.Demographic advantage
The total working population in India was around 780 million in 2011 and is expected to
increase nearly 900 million by 2020.
5. India among Top Steel Producers

2.3

India is the 4th largest steel producer in the world and among the lowest cost ones as
well. Steel is the key raw material used in automobile industry and hence being among
top steel producers definitely gives advantage to Indian automobile industry in terms of
cost and availability of high quality steel.

Identification of Critical Success Factors (CSF)

Critical Success Factor identified

Rationale

CSF 1 Ability to provide system

solutions rather than only
components

Auto OEMs are nowadays

increasingly looking for auto component providers who can provide complete system
solutions than only components. Hence the ability to be able to provide the same is
critical to
the success of auto component manufacturers.

8 | Page

CSF 2 Locational advantages

Logistics costs can be drastically reduced if the auto component

manufacturer is located within the vicinity of the auto OEM. In the currently competitive
Automotive Industry any bit of savings in costs provided by the suppliers is greatly
appreciated by the OEMs, as it directly adds to the overall margins. Auto component
manufacturers also need to give annual price cuts to OEMs, and they thus need to
address all
avenues by which to reduce costs.

CSF 3 Ability to supply at lower

costs

Auto OEMs have greater options in terms of auto

component manufacturers they can procure from and hence the ability of auto
component
manufacturers to supply at lower costs is important. Factors such as higher capacity
utilization, low cost of manpower, higher productivity of manpower, ability to procure at
lower prices from Tier II suppliers etc., are therefore critical to being cost competitive
and
thus to being in business.

2.4 Industry Benchmarks

Size of industry:

9 | Page

Category

Industry
Level
(National)

Activity
Ratios

Liquidity
Ratios

Solvency
Ratios

10 | P a g e

Indicator

Industry Average of Top 5 Firms or

players serving 75-80% of the market

Market Leader

201112

201213

201314

2014-15
(till Q3)

201112

2012-13

201314

2014-15
(till Q3)

Market Size

US $
42.2
billion

US
$39.7
billion

US
$35.1
billion

US $66
billion

US $
15.614
billion

US $
14.689
billion

US $
12.987
billion

US $
24.42
billion

Size as % of GDP

3.88

3.52

2.95

5.22

1.43

1.30

1.09

1.93

Inventory turnover

3.8

4.4

4.2

4.3

7.88

8.56

7.41

9.14

Receivables
turnover

2.43

3.16

3.79

3.90

3.86

4.12

4.89

5.11

Payables turnover

5.31

6.12

7.14

7.61

8.40

9.01

10.10

10.29

Asset turnover

0.21

0.67

0.9

1.11

1.45

1.61

1.75

1.67

Current ratio

1.828

1.976

1.89

2.014

2.09

2.37

2.14

2.08

Quick ratio

1.304

1.418

1.38

1.356

1.47

1.75

1.54

1.52

Debt-to assets
ratio

0.11019
3863

0.09051
5516

0.06490
4119

0.077867
322

0.04933
9

0.032128

0.02048

0.007497

Debt-to-capital
ratio

6.06396
5479

5.06870
7846

2.81347
3884

1.333411
478

7.81528
6624

5.891719
745

4.19108
2803

1.767515
924

Debt-to-equity
ratio

0.27666
7

0.21

0.13666
7

0.083333

0.05

0.03

0.02

0.01

Category

Indicator

Industry Average of Top 5 Firms or

players serving 75-80% of the market

Market Leader

201112

201213

201314

2014-15
(till Q3)

201112

2012-13

201314

2014-15
(till Q3)

Interest coverage
ratio

3936

245.76

434.31

139.73

833.206

177.716

365.61

643.426

Gross profit margin

14.1

13.488

12.726

12.338

15.35

11.34

10.28

11.85

Operating profit
margin

16.478

16.278

15.648

15.812

18.51

15.58

14.63

16.39

Net profit margin

11.08

10.76

10.254

9.604

13.74

11.06

10.03

11.06

Return on Assets
Including
Revaluations

390.082

449.402

509.61

593.188

1505.91

1775

2004.62

2339.89

Return On Capital
Employed(%)

30.216

28.056

25.938

26.426

31.65

23.47

19.6

26.99

Earnings per Share

95.444

81.014

75.402

105.19

357.56

305.2

281.76

426.03

Dividend Pay-out
Ratio

22.926

18.592

23.042

25.686

37.75

19.65

19.52

19.95

Staff Cost/ Salary

as percentage of
Sales

8.59

9.14

9.42

9.38

10.21

11.06

12.51

12.88

Profitability
Ratios

11 | P a g e

Category

Competitive
Ratios

12 | P a g e

Indicator

Industry Average of Top 5 Firms or

players serving 75-80% of the market

Market Leader

201112

201213

201314

2014-15
(till Q3)

201112

2012-13

201314

2014-15
(till Q3)

Operating
Expenses as
percentage of
Sales

23.18

23.79

23.50

22.60

23.35

24.77

26.31

25.92

Depreciation as
percentage of
Sales

20.1709
4

20.0451
4

20.9038
3

19.80628

31.5491
2

32.83622

35.3704
7

29.57802

Fixed Assets to
Sales Revenue

28.4413
3

29.7490
4

33.0802
6

30.31143

29.0449
9

29.87167

37.6248

32.03162

PESTEL Analysis
Category

Description

Political

Political
factors
highlight the main
law and regulations
,security measures
and
restrictions
that can apply to
the entire industry
itself

Economic

Social

13 | P a g e

Key factors for analysis

The laws brought up around the

environmental measures that are
meant to be fulfilled by any
automobile component industry.

Economic
factors
are different and
are mostly related
to
the exchange
rates,
global
economical growth
and the certain
business
settings
predominating
in
the industry.

1.Economic growth

Social factors are a

bit difficult to find
throughout
the
automobile
industry, it mostly
includes changes in
cultures
and
demographics
globally, apart from

1.Income distribution

2.Monetary policy
3.Government spending
4.Taxation
5.Inflation
4.Economic mood Consumer
confidence

2.Demographics
3.Lifestyle changes
4.Education
5.Living conditions

Rationale
Due to the different political decisions the car
manufacturers
have
to
take
certain
precautions and care of environmental issues
when manufacturing automobiles.

The Indian economy has grown at 8.5% per

annum.
Economic pressures on the industry are
causing automobile companies to reorganize
the traditional sales process.
Weighted tax deduction of up to 150% for inhouse research and R & D activities.
Govt. has granted concessions, such as
reduced interest rates for export financing.
The manufacturing sector has grown at 8-10
% per annum in the last few years.

Since changed lifestyle of people, leads to

increased purchase of automobiles, so
automobile sector have a large customer base
to serve.
Growth in urbanization, 4th largest economy
by PPP index.
The average family size is 4, which makes it
favourable to buy a four wheeler.

the changes in the

buying pattern and
capacity
of
the
customer itself.
Technological

Impacts of the
technological
advancements in
the industry

The above mentioned factors causes increase

in demand of automobiles and hence acts as a
major force in boosting the sales of
automotive parts.
1.Government and industry effort
in technological advancement
2.New discoveries and
development
3.Rates of technological
obsolesce

More and more emphasis is being laid on R &

D activities carried out by companies in India.
Weighted tax deduction of up to 150% for inhouse research and R & D activities.
Technological solutions helps in integrating
the supply chain, hence reduce losses and
increase profitability.

4.Energy use and costs

Customized solutions (designer parts, etc)can

be provided with the proliferation of
technology.

Environmental

Environmental
impact of the
industry

1.Environmental regulation and

protection

Impact on the environment is a major factor

that is to be considered for any industry.

Legal

The regulations
that
restricts/shapes the
industrial actions of
a company

1.Environmental regulation and

protection

These mentioned laws/restrictions play a

major role in the growth and functioning of the
automotive parts industry

2.Employment law
3.International trade regulation
4.Competetion regulation

2.6

Porters Five Forces Analysis

Porters Five Forces

14 | P a g e

Description

Key factors for analysis

Rationale

Buyer Power

High Demand for

the automotive
components by
OEMs (buyers)
give the buyers
very few chance
for any bargain.

Total number of automotive component

suppliers.

Supplier Power

Bargaining power
of the supplier is
medium.

Suppliers providing raw materials to the

industry, trends, etc.

Existing
Competition

Competition
among firms is
increasing

A large number of companies as Bosch,

Delphi, continental, Magnetti Marelli are
fighting fiercely among each other.

Threat to new
entrants

The threat level is

medium

Automotive component industry

contributes about 5% of gdp in
manufacturing, very few companies with
bosch as the market leader exists and
other companies fall far behind.

With very few companies doing well in

India, there is a huge potential in this
sector.

Threat to
substitutes

Threat from
substitutes is very
low

Indian automobile industry is growing at

a rapid rate and the economy is doing
good. So, the demand for automotive
components will rise.

What can be a substitute for

automotive components in automobile
industry.

Quality of the product.

Competitive pricing strategy.

2.5 Competitive Landscape

Value propositions ( Low Cost, Differentiation, Niche)

15 | P a g e

More number of suppliers and quality

products will give the buyer more
bargaining power.

There are a large number of steel and

aluminium suppliers. Embedded
electronic chips can also be procured
from a large range of suppliers.

Todays competitive business scenario challenges businesses with continuously evolving product lifecycle elements such
as reducing product development times, increasing expectations on quality, manufacturing process optimization and
design cost pressures. The increasing demand for enriching user experience also places more emphasis on cutting edge
product engineering solutions.
Companies need an industry expert to provide the best of product engineering solutions to their customers. They need a
product engineering partner with a rich heritage of best in class products and who can provide necessary expertise in the
domain,
With its enviable experience in the product engineering domain, Bosch Engineering and Business Solutions delivers
engineering solutions to companies looking to make optimal use of their available resources. We at Bosch have a rigorous
product engineering methodology which reduces post-deployment defects and decreases ownership costs.
The customized product engineering solutions offered by Bosch have helped customers to offer state of the art products in
various fields. Our solutions also help our customers to stay ahead of competition by offering advanced products at an
affordable cost.
Bosch provides expertise in the areas of embedded software engineering, mechanical engineering, hardware engineering,
and product testing and validation.

2.6 Key trends and future developments

16 | P a g e

Key Trend

Impact on Industry (Low, Medium,

High)

Certainty of Impact (Low probability,

medium probability, high probability)

Drive Quality-Cost-Delivery (QCD)

improvements

High

Re-orient export strategies

High

Acquire new customers in India

Medium

Explore non-automotive segments

Medium

This is mission critical to continue to be

the supplier of choice for existing
customers as well as attract new
automotive OEMs.
By focusing on mature automotive
markets
Indian
auto
component
companies
can leverage the increasing drive to
source from low cost destinations. In
parallel, developing export
relationships/ partners in emerging
automotive markets will help de-risk and
grow the exports business.
The highly cost sensitive automotive
market coupled with a high degree of
competitive intensity, is forcing new
MNC players to increase localization. But
the stumbling block is lack of choice of
compatible
suppliers.
This
is
an
opportunity area for Indian auto
component players. The qualifying
criteria are stringent and hence will
necessitate an upgrade of service levels
and manufacturing capability through
operational excellence measures, to woe
new and discerning OEM customers.
What began with a top Indian auto
component players diversification from
automotive forgings to aerospace and
other high technology sectors has now
gained momentum.

17 | P a g e

Increasing number of auto component

players are exploring to de-risk their
automotive business by diversifying into
allied industries. This helps smoothen
out the business over different industry
cycles.

18 | P a g e

3 Company Overview
3.1

Company background

Bosch is a uniquely constituted organization that is driven by long term vision rather than creation of short term shareholder
value. The Robert Bosch Foundation has 92% holding in the company and gets dividends to this extent. However, it is
important to understand that this foundation does not operationally control the Bosch group. The operational control lies with
the Robert Bosch Industrial Trust, which controls the running of the company, but does not get any financial returns like
dividends.
The dividends received by the Foundation are used for research, charity, arts and social welfare programs world-wide. As a
result of this constitution, Bosch is an organization which in its well over 120-year history demonstrated many times that it
follows long-term strategic goals and is not distracted by short-term profit considerations. Long-term investments in products
and technology, in markets and customer relations, as well as in our associates helped to build a strong reputation among our
customers, partners and the industry.
Bosch can look back on a long presence in India. We set up our first sales office in Calcutta some 80 years ago, and Bosch
Limited (erstwhile Mico) has been our subsidiary for more than 50 years now. Today in India, Bosch is represented in by its
four subsidiary companies: Bosch Limited; Robert Bosch Engineering and Business Solutions, our IT company; Bosch Rexroth
India Limited; our hydraulic subsidiary; and Bosch Chassis System India Limited, our brake-company.

19 | P a g e

3.2

Timeline with key milestones and their strategic impact

1886: Robert Bosch opens his Workshop for Precision Mechanics and 1886: Electrical Engineering in
Stuttgart on November 15.
On November 15, 1886, Robert Bosch received official approval to open a Workshop for Precision Mechanics and Electrical
Engineering at 75B Rotebhlstrasse in Stuttgart. He opened the workshop together with a mechanic and an errand boy. The
rented premises comprised an office, one larger and one smaller workshop, and a room in which a small forge was housed.
1898: First Bosch office outside Germany in Great Britain
Together with Frederick R. Simms, Robert Bosch set up his first office outside Germany in London in 1898. It was a sales office
for Bosch products in the U.K.

1905: First Bosch manufacturing plant outside Germany is opened in Paris.

In 1905, Compagnie des Magntos Simms-Bosch built a factory at 22-24, rue Violet in Paris. It was the first Bosch
manufacturing plant outside Germany.

1922: Bosch sets up first agency in India in partnership with Illies & Company at Kolkata (then Calcutta)
Bosch stepped into India through the Illies Company, which established an agency at Kolkata. Later, a Bosch Service
Workshop was founded in 1924. In 1949, this ownership moved to an Indian company called Chaziabad Engineering Comp.
Ltd., New Delhi. Today, the Bosch Group in India employs over 26,000 associates and has now grown to include 13
manufacturing sites and seven development and application centers.

20 | P a g e

1927: Series production of Bosch fuel injection pumps and nozzles for diesel engines
After a five-year development phase, production of 1,000 diesel injection pumps began on November 30, 1927. The first units
were delivered to MAN early the following year. Other customers were quick to follow, and, during the 1930s, numerous
European manufacturers equipped their trucks and agricultural machinery with Bosch diesel injection systems.

1932: Presentation of the Bosch hammer drill

At the Leipzig trade fair in 1932, Bosch unveiled its new hammer drill. Bosch had succeeded in series-producing the first
electric drill that could strike and rotate at the same time. The tool made work at construction sites much easier, and quite
literally stuck by its users "through thick and thin."

1933: Launch of the Bosch refrigerator

"Practical, elegant, and full of character!" That was how advertisements in 1933 sang the praises of the latest Bosch product,
the electric refrigerator. The model unveiled at the Leipzig spring trade fair stood out from competitors products mainly by
virtue of its rounded drum shape, modest power consumption, and comparatively low price.
1942: Robert Bosch passes away in Stuttgart
Robert Bosch died at the age of 80 on March 12, 1942, of complications resulting from an inflammation of the middle ear. The
funeral was held on March 18. The Reich government insisted on holding a state funeral, much to the displeasure of the
Bosch family and the company. The bells that Robert Bosch himself had donated to the garrison church rang out for him in a
final salute.

21 | P a g e

1951: Motor Industries Company Limited ( Mico), predecessor of Bosch Limited founded in Chennai
Bosch gave license agreement to Motor Industries Co. Ltd. (Mico) for manufacturing Bosch products. Mico was initially located
in Chennai with employee strength of just two, and a capital of over Rs.2.8 million held by 21 shareholders. Over the years,
the Mico Plant became an iconic landmark in the southern Indian city of Bengaluru.

1951: Gasoline-injection systems for passenger cars with two-stroke engines

In 1951, Bosch gasoline injection was presented in a two-stroke Gutbrod Superior 600 at the Frankfurt auto show. With its
precise fuel metering, it reduced the vehicle's gasoline consumption by some 20 percent and increased its power from 23 to
28 horsepower (17 to 21 kilowatts). In the same year, Goliath presented its GP 700 with the same injection system.

1953: Construction of the first manufacturing plant at Adugodi, Bengaluru. Begins assembly of spark plugs.
Construction of the first manufacturing plant at Adugodi, Bengaluru, thus begins assembly of spark plugs.

1954: Production of single-cylinder diesel fuel injection pumps, nozzle holders and filters begin at Bengaluru
plant
Nowadays, the Bosch spark plug, which has been developed and improved continuously over many decades, is a major
system component, which plays a key role in fuel economy, clean and efficient combustion and the reliable operation of
engines and catalytic converters. Spark plugs are being used in cars, motorcycles and scooters, commercial vehicles, engines
for boats and jet-skis, gardening and forestry equipment, stationary gas engines. Bosch globally has been producing spark
plugs since 1902.

22 | P a g e

1956: Manufacture of multi-cylinder diesel fuel injection pumps at Bengaluru plant

Manufacture of multi-cylinder diesel fuel injection pumps at Bengaluru plant
1963: Acquisition of Erich Wetzel Verpackungsmaschinen GmbH
The acquisition of the Karlsruhe-based Erich Wetzel Verpackungsmaschinen GmbH in 1963 marked Bosch's entry into the
packaging machinery segment. Acquisitions of other well-known manufacturers of packaging machinery including HamacHansella, Hesser, Hfliger & Karg, Hller, and Strunck followed in subsequent years. Bosch merged these companies in
1974 to form its Packaging Technology division.

1969: Establishing roots in Nashik

Based on the in-depth experience gained in Bengaluru, a pilot Plant in Nashik was established for manufacturing nozzles and
nozzle holders. These components form an important part of the fuel-injection system and help to shape engine performance,
exhaust emissions and noise characteristics.

1972: Manufacture of nozzles and nozzle holders at second plant at Nashik, Maharashtra
Manufacture of nozzles and nozzle holders at second plant at Nashik, Maharashtra

1978: Start of series production of ABS, the electronically controlled antilock braking system
The success story of ABS, the first electronic four-wheel antilock braking system for passenger cars, began in 1978. This
groundbreaking Bosch technology was the departure point for all modern braking control systems. Other Bosch systems

23 | P a g e

based on ABS, such as the TCS traction control system in 1987 and the ESP electronic stability program in 1995, also met
with success in the market.

1989: Market launch of the first independent vehicle navigation system in Europe: TravelPilot IDS
Bosch had already played a pioneering role in the 1970s with ALI, its driver guidance and navigation system. The next
prototype, presented in 1983, was EVA, an "electronic pilot for drivers" that used an electronic map to guide drivers from one
destination to the next. TravelPilot IDS followed in 1989, but the breakthrough was not to come until 1995 with the
introduction of the TravelPilot with satellite navigation, route guidance, and speech output.

1990: Inauguration of 3rd plant in Naganathapura in Bengaluru

Inauguration of 3rd plant in Naganathapura in Bengaluru

1993: Manufacture of Bosch electric power tools at the Naganathapura plant

The Power Tools Division has expanded since then, finding newer and better solutions through its innovative products and
services. The most recent ventures have been in the do-it-yourself (DIY) and lawn and garden equipment markets. For an
Indian market unaccustomed to DIY tools, awareness is the key. And the Power Tools Division is constantly innovating to reach
out to its diverse market. A Mobile Vaahan toured several states in northern India, teaching self-employed craftsmen how to
get the best out of Bosch Tools.

1995: Production start for worlds first ESP electronic stability program
Bosch achieved a technological milestone in 1995 with the introduction of ESP. The electronic stability program, a system
that can save lives by preventing vehicles from skidding, was an immediate commercial success.
24 | P a g e

1998: IT subsidiary Robert Bosch India Ltd., predecessor of Robert Bosch Engineering & Business Solutions Ltd.
formed at Bengaluru
Robert Bosch India Ltd., would later become Robert Bosch Engineering and Business Solutions Limited, a 100% owned
subsidiary of Robert Bosch GmbH. Today, Robert Bosch Engineering and Business Solutions Limited is a supplier of technology
and services, offering end to end engineering, Information Technology and business solutions. With more than 12,000
associates, it is the largest software development center of Bosch, outside Germany.

1999: Inauguration of fourth plant at Jaipur, manufactures distributor-type diesel fuel injection pumps
A TS16949 and ISO 14001 certified company, it is a technological oasis in the developing state of Rajasthan. The Plant was
set up to manufacture Verteiler injection pumps to serve the needs of the Indian market as well as function as an export hub.
The Verteiler injection pump, used in diesel engines, has one fuel metering plunger connected to a distributor that delivers
the metered fuel to the correct cylinder.

2000: Bosch opens automotive research and development center Technical Center India in Bengaluru
Mico Application Center (today known as Technical Center India), predecessor of Technical Center India - India's foremost
automotive R&D facility set up at Bengaluru
2001: Mannesman Rexroth India becomes automation technology subsidiary - Bosch Rexroth India Ltd.
Today, Bosch Rexroth is one of the leading specialists in drive and control technology. The company supplies tailored solutions
for driving, controlling and moving. It provides a complete range of world-class products, systems and services for drive and
control technologies in various industries such as machine tool, press, plastic processing equipment, steel mill, civil
engineering, materials handling,

25 | P a g e

2003: Bosch Security Systems began operations in India.

Bosch Security Systems began operations in India.

2004: Bosch Announces INR 1,000 crores in India

Bosch Announces INR 1,000 crores in India

2005: Bosch applicates India's first locally applicated common rail system in Mahindra Scorpio Turbo 2.6
Bosch applicates India's first locally applicated common rail system in Mahindra Scorpio Turbo 2.6

2006: Bosch launches Indias first common rail pump and injector
Bosch launches Indias first common rail pump and injector

2007: Production of common rail injectors at Nashik Plant.

Production of common rail injectors at Nashik Plant.

2008: Changing a name, changing a brand

In another momentous shift, MICO was rechristened as Bosch Limited; and the software arm Robert Bosch India Limited, as
Robert Bosch Engineering and Business Solutions Limited. The journey of changing the brand name from Mico to Bosch
26 | P a g e

started in 2004. It was a long process even today, sections refer to the Bengaluru Plant as MICO, but the Bosch brand is now
stronger than ever before.

2009: Bosch Automotive Electronics Pvt. Ltd. set up at Naganathapura, near Bengaluru
Bosch Automotive Electronics Pvt. Ltd. set up at Naganathapura, near Bengaluru

2009: Start of ECU Production

Bosch Automotive Electronics India Pvt Ltd (RBAI) Starts of production Electronic Control Unit (ECU)

2010: Launch of A4000 pump conforming to latest BS III emission norms for commercial vehicles in India
The A4000 pump meets requirements in accordance with BS3 & TREM emission norms and has contributed significantly in
changing the landscape of the commercial vehicle and off-highway segments in India.

2011: Start of Thermo-technology and Solar Energy businesses in India

Start of Thermo-technology and Solar Energy businesses in India

2012: New packaging technology manufacturing facility inaugurated at Verna, Goa

Bosch Packaging Technology India announces the inauguration of a new manufacturing facility at Verna, Goa.

27 | P a g e

2013: Bosch Electrical Drives India Private Ltd. expands and moves to new facility at Oragadam, Chennai
Bosch Electrical Drives India Private Ltd. expands and moves to new facility at Oragadam, Chennai

2014: New Research Technical Center (RTC) inaugurated by IT subsidiary in Bengaluru

New Research Technical Center (RTC) inaugurated by IT subsidiary in Bengaluru
In Brief:

28 | P a g e

29 | P a g e

3.3

Vision, Mission, Goals, and Strategic Themes

In order to enable people to lead life with dignity, it is important for them to become productive members of our society. This
is what will create sustainable development in the long run. Hence our vision includes the quality of life and the importance
of livelihood in sustaining life.
Vision: Enabling Lives and Livelihood through Education and Technology
Mission- How we intend to achieve the mission: Like a spark that ignites an engine, the foundation aims to empower
individuals to create an impact that will help communities stand on their own feet, through employability training and technosolutions.
Technology refers to the application of a systematic method in order to achieve a desirable outcome.
Strategic Goals and Objectives:
1. Provide Employability Training and Techno-Solutions through Partners: Vocational training aims at connecting
individuals and societies to the economic engines, while technological solutions aim at robust affordable solutions that
work
in
the
community
context;
eg:
telemedicine
or
Solar
Power
for
remote
villages.
The foundation works through partners who may provide resources to enable this work. Eg: by funding providers of
marketable vocational trainings and entrepreneurs who create machines that could provide improvement in the quality
of life for disadvantaged communities.
2. Help communities stand on their own feet: The long term objective of the foundation's work is to make
disadvantaged communities self-sustaining. The foundation does this by mobilizing, consolidating and redeploying
resources. Hence projects are evaluated for their long term impact.
3. Empower individuals to create an impact: The foundation aims to identify and work with individuals to create an
impact in society. The foundation will develop a model of empowering individuals to be change agents.

30 | P a g e

3.4

Key Product and Service Portfolio

Gasoline Systems:
We are an extended wing of Bosch Gasoline systems, Germany which develops and manufactures modern gasoline - engine
systems that contribute to making vehicles more dynamic, cleaner and more economical.
Our aspiration is to be the preferred partner in India for gasoline engine management systems. To this end we offer our
customers top class technology, high quality products and services. We have a dedicated team experienced to cater to the
requirements and needs of the Indian customer.

Areas of operation

Technical Sales

Product development

Application

Manufacture

Product service
Diesel Systems:

Bosch in India, is committed to developing innovative diesel fuel injection products, apart from providing services that will
help meet the stringent emission norms of the future. The in-line fuel injection pumps of Bosch could cater to the full
spectrum of diesel engines till BSII. They are used in a range of engines starting from small fixed installations to large earth
movers.
31 | P a g e

By increasing pressure capability, improving timing control along with combustion optimization, the in-line pump is able to
meet the next level of emission norms of BSIII in major parts of the country, thereby reducing carbon monoxide (CO)
emissions by 50%.
With the introduction of Bharath Standard IV (BS IV) in 13 cities across India, the need for reduced emissions, and quieter
engines are making greater demands on the engine and the fuel-injection systems. These demands can be met by the
Common Rail fuel injection system that delivers fuel at a high pressure, precise quantity, precise timing, and split in to
multiple injections. Moreover, electronic control in the Common Rail diesel fuel injection system increases flexibility making
the vehicles less polluting, more fuel efficient and capable of meeting future emission norms for a host of end applications
like: Load carriers, Passenger cars, Light & Medium duty Commercial vehicles.
For the low price vehicle segment, second generation Common Rail System based on single plunger pump with the very
efficient inlet fuel metering control system for the single and two cylinder engines was introduced. The first generation
Common Rail system based on the principle of high pressure control system is presently in Series production for this
segment.
In line with its practice of developing and producing state of the art technology for the market, Bosch began production of the
A4000 pump in 2010. The A4000 meets the requirements, which is in accordance with BSIII & TREM emission norms. This has
contributed significantly in changing the landscape of the commercial vehicle and off-highway segments in India.
These unique products are a clear testimony to the Companys strong innovative culture and its focus on providing value to
the customers.

Areas of operations

Electronic Diesel Control (EDC)

Air management

Injection management

Exhaust-gas management
32 | P a g e

Electrical Drives:

As part of the Automotive Technology business sector, the Electrical Drives division develops and manufactures mechatronic
components and systems for body applications. With innovative actuators, components and systems for engine thermal
management, air conditioning, and windshield cleaning, we offer new solutions for convenience functions as well as for the
basic equipment of vehicles.
Focusing on customer benefit, quality, and competitive prices, we are market leaders in many of our business segments. The
division includes the business units Actuation Systems, Thermo Systems, Wiper Systems, and a product group for new
business fields. The divisions headquarters are located at Buehlertal, Germany.

Areas of operation

Actuators for window lifting, seat adjustment, and sunroof actuation

Blower modules and drives for engine cooling fans

Pumps and valves for engine cooling systems

Components for air conditioning

Front and rear wiper drives, wiper arms, and wiper blades

Electric steering motors, motors for ABS, ESP, and eBikes

Bosch Electrical Drives India Private Limited has been formed since April 2008 with the sole objective of dealing with
Electrical Drives products from Robert Bosch GmbH, Germany, and also from its affiliated and subsidiary companies in the
rest of the world.

33 | P a g e

Bosch Electrical Drives India Private Limited is engaged in Sales, Manufacturing, Development, and Application of Wiper
Systems including Wiper Motors, Engine Cooling Systems including fan motors, HVAC blower motors, window lift motors and
other system components.

Car Multimedia:
Bosch Car Multimedia develops smart integration solutions for entertainment, navigation, telematics and driver assistance
functions used in the original equipment business. The needs of the driver are always at the focus of all research and
development activities to create technologies that enhance safety and driving convenience and at the same time reduce
energy consumption.
Information, communication and entertainment in the vehicle environment play an integral role in automotive development.
How the vehicle and driver interact with one another and by what means are decisive factors. We develop cutting-edge
features tailored to modern mobility requirements, providing optimum driving convenience, safety, and access to
entertainment and information via smart networked architectures. Solutions from Bosch are specifically designed to reduce
driver distraction through their implementation of user-centric interface concepts.
One of Car Multimedias core competencies is producing connectivity control units (CCU) for passenger cars, two-wheelers
and commercial vehicles. CCUs connect vehicles to the internet, enabling such safety features as eCall in the event of an
accident and bCall in case of a breakdown.
In the near future, vehicles will also be connected to the cloud. Connected Horizon, a Car Multimedia solution, will aggregate
data from all connected vehicles to provide enhanced navigation with real-time traffic and weather data as well as
anticipatory powertrain control to reduce energy consumption.
The Car Multimedia experts at Bosch are also committed to simplifying smartphone integration in cars with solutions like
mySPIN. This technology allows users to operate their favorite apps on their Apple or Android smartphones using the
accustomed commands and without compromising driving safety. Users control the apps via the vehicles display.

34 | P a g e

Product range:
Driver information systems

Navigation

Infotainment

Smartphone integration

Software services and smartphone apps

Eco.Logic Coasting

Display solutions

Head-up displays

Freely programmable instrument clusters

Dual View displays

35 | P a g e

Solutions for commercial vehicles

Coach entertainment

Truck entertainment

Truck telematics

Automotive Electronics:
Within the Bosch-Group, the Automotive Electronics Division with its headquarters is located in Reutlingen near
Stuttgart,Germany. The division develops, produces, and sells microelectronic products for automotive and non-automotive
applications. Further, the division's core competencies include systems integration and application engineering for the
vehicle.
The product program encompasses

Components (semiconductors, sensors)

Electronic Control Units (e.g. for body electronics, brake control systems, and engine management) and Electronic
Manufacturing Services (EMS)
Non-automotive applications such as sensors for consumer electronics, as well as eBike systems
In manufacturing, we develop and utilise processes in the areas of substrate and semiconductor technology as well as silicon
micro-mechanics.

Areas of operation

Electronic Control Units (ECUs)

36 | P a g e

Contract manufacture of ECUs

Body electronics and ECU components

Mechatronic modules for electric power steering

Semiconductors

Sensors

Power electronics and modules

eBike systems

Bosch Energy and Building Solutions:

BEBS offer solutions and services in the fields of energy generation and energy efficiency services.
Under Energy Generation Services, it offers endtoend solutions from identifying the optimal solution to engineering and
construction of a Solar power plant. BEBS also undertakes operation and maintenance contracts for solar power plants
Under energy efficiency services, BEBS offers solutions to manage energy efficiently through a comprehensive analysis of
present energy consumption patterns and forecast of future consumption patterns.

Security Systems:
37 | P a g e

Bosch Security Systems is an innovative, global provider of high-quality security, safety, and communication products and
solutions. It is one of the key players in the industry both globally and in the Indian market. We offer a complete range of
specialized state-of-the-art products and systems for standard or customized applications and projects, which enables us to
offer our customers true one-stop shop solutions.
Bosch Security Systems is an innovative, global, one-stop-shop for high-quality security and communication products.
Offering an unrivalled choice and an integrated approach, our company offers a complete range of specialized state-of-the-art
products and systems for standard or customized applications and projects. The Security Systems division accounts for 5400
active employees in over 40 countries.
Boschs innovative IP and Analogue based CCTV Surveillance System and Access Control is a part of our Security portfolio;
whereas for safety we have fire alarm and intrusion systems. Further, we have public address and conference systems,
critical communication systems and professional sound systems which form a part of communication.
We have offered our solutions to various prominent projects like metro rail, stadia, city/market surveillance & traffic
management solutions in the major metros, surveillance solutions to numerous airports, sensitive-high profile government
buildings, hotels and top corporate houses.
Bosch Security Systems has its state-of-the-art demo cum training academy at Bengaluru. This academy aims to bring the
highest level of manufacturer training to the industry, to improve product knowledge and competency.
Boschs innovative IP and Analogue based CCTV Surveillance System and Access Control is a part of our Security portfolio;
whereas for safety we have fire alarm and intrusion systems. Further, we have public address and conference systems,
critical communication systems and professional sound systems which form a part of communication.
We have offered our solutions to various prominent projects like metro rail, stadia, city/market surveillance & traffic
management solutions in the major metros, surveillance solutions to numerous airports, sensitive-high profile government
buildings, hotels and top corporate houses.
Bosch Security Systems has its state-of-the-art demo cum training academy at Bengaluru. This academy aims to bring the
highest level of manufacturer training to the industry, to improve product knowledge and competency.

38 | P a g e

Bosch Security Systems provides electronic security solutions for a vast array of applications:

Residential homes, apartments

Commercial offices, retail, meeting centers

Industrial factories, warehouses

Institutional hospitals, corrections

Educational schools, universities

Public venues museums, libraries, congress centers

Transportation airports, train stations

The product portfolio consists of:

Closed circuit television (CCTV) systems including

state of the art IP- solutions

Access control systems

Intrusion detection and control

Fire alarm systems

Public Address/Voice Evacuation systems

Conference systems
39 | P a g e

Paging and Personal security systems

Social Alarm systems for the elderly and disabled

Household Appliances:
Bosch Home Appliances forms part of the BSH group (BSH Hausgeraete GmbH) and is one of the most successful
international brands in white goods.
The Bosch range of home appliances, including refrigerators, washing machines, dishwashers and dryers are designed and
manufactured keeping Boschs unwavering commitment to the highest standards in technology and quality.

Engineering Services:

Bosch India develop Embedded Software for Electrical Control Units, Tools and Diagnostics. We handle complete ECU projects
including Hardware, Software and System development. They offer ECUProg (End of Line solution), which is an End-of-Line
flashing tool which helps customers in Variant management, IQA (Injector Quantity Adjustment) management and Feature
management. We provide Mechanical Engineering Design, Simulation, Benchmarking and Reverse Engineering services. We
also offer integrated system solutions in the areas of Manufacturing Automation and PLC Engineering support. Their
Configuration Software and Smart Phone Apps development are the latest addition to their service portfolio.

3.5

Core Competencies of the firm

Full-line solution provider, offering products, solutions and services

40 | P a g e

Headquarter of Bosch Energy and Building Solutions in Asia Pacific

Empanelled as the highest rated channel partner for Ministry of New & Renewable Energy (MNRE)

Introduces patented technology for heating, ventilation, and air conditioning (HVAC) system that reduces energy costs
by 30 percent and also improves air quality

Bosch Limited, a leading supplier of technology and services, announced the launch of Bosch Energy and Building Solutions
(BEBS) in India. Primarily a service based line, this new business unit will focus on energy generation and efficiency. With the
inclusion of this new business unit, Bosch in India is now a turn-key solution provider for efficient energy solutions. Located in
Bangalore, it is the first office in Asia Pacific and will collectively be responsible for the Middle-East and Asia region.
Commenting on the launch of the new business, Dr. Steffen Berns, Managing Director, Bosch Limited, said, Globally, with
over 1,500 clients across several industries, Bosch Energy and Business Solutions has significant expertise in the energy
domain. With this portfolio expansion, we consolidate our position in the Energy business as a full-line solution provider,
offering products, solutions and services. He further elaborated, With this move, we aim to expand and intensify our
operations in the energy sector to cater to the huge Indian market. The launch of BEBS is a step in this direction as we look to
offer efficient services which will help significantly bring down the energy cost.
Bosch will provide solutions for energy generation and conservation. The solutions can be for hot water, steam and power
using renewable energy.
Strong partner for customized energy concepts, services and technology
Bosch Energy and Building Solutions GmbH is a wholly owned subsidiary of Robert Bosch GmbH. Headquartered in Germany,
the company, which was established in 2011, specializes in services designed to improved energy efficiency in commercial
buildings, which include medium-sized and industrial enterprises, hospitals, malls, offices, airports, warehouses and large
residential complexes. The intelligent networking of energy systems is especially important in business premises.
Recovering heat from exhaust air, controlling ventilation according to actual demand, using air compressors to utilize waste
heat from production to heat offices with measures such as these, the company can provide an energy saving of 20 percent
on average for its customers. Its portfolio ranges from advisory services and the optimization of existing facilities to the
construction and operation of power-generating plants and local heating networks.
41 | P a g e

The business model will be based on either shared or guaranteed saving models. The energy generation solutions shall
primarily be based on renewable energy. In addition to this, the existing Thermo-technology division will continue to offer
products and systems which include solar water heaters, heat pumps, boilers and HVAC (Heating, Ventilation, and Air
Conditioning) systems. With this, the energy business in India will look at synergizing its sales channels to offer efficient,
connected and complete energy solutions to customers. As part of the market penetration strategy, BEBS will combine direct
selling as well as Bosch channel partners. For larger projects, the business offer direct solutions and for smaller industrial
clusters, solutions would be offered through the existing channel partner network.
Bosch has been empanelled as the highest rated channel partner for the Ministry of New and Renewable Energy (MNRE), and
state nodal agencies. Further, Bosch Energy and Building Solutions in India has already been accredited as a Grade one
Energy Services Company by the Bureau of Energy Services (BEE).
Working on identified strategic areas
Commenting on this development, Venugopalan C M, head of the Boschs energy business in India, said: We shall combine
our experience of energy services in Europe with local experts and execution teams to offer optimized and quality solutions to
our Indian customers in both energy generation and efficiency segments. The commercial building market presents a great
opportunity for energy efficiency improvement. When it comes to HVAC systems, there is a huge amount of unused energysaving potential. By improving HVAC system management, we not only enhance comfort, we can also achieve energy savings
of 30 percent on an average through our patented Climate Technology solution. We also offer an excellent monitoring solution
in our Energy Platform that allows users to monitor energy consumption at both demand and supply side. The business will
receive technical support from the companys headquarters in Germany and from the Engineering & Business Solutions entity
(RBEI) of Bosch in India.
Bosch energy offering end-to-end energy solutions
Since the early 1990s, Indias primary energy consumption has steadfastly been increasing, registering a growth rate of
around five percent per year since 2005. In 2011 Bosch Ltd. marked its entry into the energy portfolio and has since been
offering quality and innovative products and solutions, for example in the industrial and commercial boiler segment

3.6
Key
42 | P a g e

Business Model of the organization

Majority of the key partners of

Motivations for partnerships

Partners

Key
Activities

Value
Propositio
ns

bosch are the OEMs which

manufacture automobiles, as
Volkswagen, ford, Daimler,
Chrysler, Tata motors,etc.
MLB, Cadence design
systems, AVL, Tomtom, Lam
research, Infineon
Technologies, Nascar, etc. are
some of the suppliers of
bosch
A large number of sub
components as
microcontrollers, chipsets,
sensors, safety equipments
are provided by these
companies which are further
utilised by Bosch.
Special emphasis on quality
and this is the main criteria
on which the company thrives
upon.
Direct relation with OEMs as
they are the customers of
bosch.
Providing innovative and
game changing automotive
solutions across the world
End to end product
Engineering Solutions.
Systematic approach in
design and development

Customer
43 | P a g e

Each transaction with the

Contracting of sub components to niche segments of the market

so that specialised products are obtained.
Reducing the cost.
Acquisition of particular resources and activities

Categories
Research and development of new innovative products
Quality enhancement and check at each and every state.

Characteristics
Unique features
Safety the first criteria
No compromise with quality.
Getting the Job Done
Design
Brand/Status
A close relation with clients on honest grounds ensures a long lasting

Relationshi
ps

Customer
Segments

Key
Resources

44 | P a g e

customer are more personal

and productive
This in turn maximizes
opportunities in retaining high
value customers and increase
revenue and profit.
Bosch offers clients with a
3600 CRM solution that helps
to foresee market trends,
customer behaviour,
understand competition and
leverage technology
The superior complaint
management feature that is
encompassed in this CRM
solution helps customers
enhance customer
satisfaction and retention.
Mostly working for
automobile car
manufacturers.
Important customers are
FORD, Tata motors, Maruti,
Volkswagen, Daimler,
Chrysler, Audi and many
more. Almost each and every
car in the world contains
parts by Bosch.
Quality Products, research
and development, Innovation,
high end technology
Well qualified and trained
personnel

relation with them.

Mass Market
Niche Market
Segmented
Diversified
Multi-sided Platform

Types of resources
Physical
Intellectual (brand patents, copyrights, data)
Human
Technological

Channels

Cost
Structure

Revenue
Streams

45 | P a g e

There is a one to one relation

with each customer and a
unique relation is maintained
with each one of them.
We reach them through video
conferencing, Telephones,
mails , meetings, etc.

Cutting edge technology and

engineering activities are the
most important part which
defines our cost structure.
Quality ensured products at
each and every step,
expensive chipsets, ECUs,
and other Engineering units
comes as the most expensive
ones.
Customers pay for the world
class products and
unmatched quality.

Channel phases
1. Awareness
Our customers are told about the quality of products with competitive
pricing.
2. Evaluation
An unmatched world class service and products are the things on which
we are evaluated and we stand number 1 in the world.
3. Purchase
We provide them with different variants and also give them an option of
customization.
4. Delivery
Quality is the only value for which we strive for and this is delivered in
each and every segment of our product.
5. After sales
We provide after sales support to our customers and also have a large
number of bosch workshops throughout the world.
The Business is Value Driven (focused on value creation, premium value
proposition). Main emphasis is laid onto the maximum satisfaction of
the customers and high safety feature is the main criteria on which we
work upon.
A competitive cost structure is maintained providing the best quality at
best possible price, but there is no trade off in quality at any point to
reduce the cost.

Fixed pricing of standardised products with each variant listed and

communicated to the customer. For further customization customers
are charged as per the product features as desired by them.

3.7SWOT Analysis

Bosch India: Financial SWOT Analysis

STRENGTHS:

domestic market
monetary assistance provided
skilled workforce
experienced business units

46 | P a g e

WEAKNESSES:

competitive market
brand portfolio

OPPORTUNITIES:

THREATS:

new acquisitions
growing economy
growth rates and profitability
new products and services

price changes
increasing costs

3.8 Competitor Analysis (identify competitors)

3.8.1

Based on Financial indicators

Company

Current Price

Book Value

P/E Ratio

Banco Products (India) Ltd.

97.95

57.12

16.81

700.53

Sundram Fasteners Ltd.

140.95

40.88

21.89

2,961.76

Federal-Mogul Goetze (India) Ltd.

317.25

81.03

56.29

1,764.93

Talbros Automotive Components Ltd.

87.75

98.24

10.86

108.33

Rane Engine Valve Ltd.

451.00

171.93

12.91

303.03

47 | P a g e

Market Cap
(Rs. Cr.)

Ucal Fuel Systems Ltd.

92.80

143.18

10.37

Autoline Industries Ltd.

35.20

109.13

0.00

4 Future Growth Strategy for the organization

4.1

Portfolio Analysis
Based on BCG Matrix

48 | P a g e

205.21
46.57

BCG Matrix shows the product position in the market and their performance evaluation following are examples of the BCG
matrix
1.

BOSCH Battery & spark plug STAR (high market share and high market growth)

2.

BOSCH wiring assembly? Mark (low market share and unknown opportunities)

3.

BOSCH fuel injector, power tools CASH COWS ( market isnt growing, opportunities are limited)

4.

BOSCH generators DOG( market share is also low and low market growth

4.2 Companys Strategic Roadmap for future

Near Term (<- 2 years)

Mid Term (2-5 years)

Long Term (5-10 years)

Growth Areas

Four-wheeler OEM
business

Aftermarket business
(four-wheelers & twowheelers)

OEM business

High Level Tasks

Establish strategic
partnership with all
major customers
Introduce new range of
batteries to suffice
Quick Charge and Deep
Discharge
requirements
Effective customer
engagement at
multiple levels to
strengthen customer

Focusing on below-theline activities for

effective channel
engagement
Maintaining effective
post after sale services

Aggressive growth plan

continue to
outperform the
industry growth
Focus on the tractor
segment to increase
market share
Commence business
with leading 2-wheeler
OEMs in India

49 | P a g e

bonding

Potential Benefits to be
achieved

Rewards

Risks

Graduate from a
product vendor to a
complete solutions
provider

Continue to outperform
industry growth
Capacity expansion in
progress

Foreign Exchange rate

fluctuation risk

Bridging the gap in

product offering
Strengthening reach
and penetration in 2wheeler segment

Initiate business with

other global and
domestic 4-wheeler
OEMs

Improving the brand

visibility through media
campaign
Strengthen the
presence in the
replacement market

Increase business
volumes and share
with Indias leading car
manufacturer both
diesel and petrol
variants

Raw materials price risk

4.3 Product Market Investment Strategy

Indian Auto-component industrys reaction to the global financial crisis of 2008
- Atmosphere of Gloom and Doom
- Volume demand shrunk by almost 50% overnight
- Industry reaction Laying off people
- Cutting back production
- Expansion plans put on hold (industry was running out of cash)
- (Investment in new capacity grew by 1% instead of 33% in previous year)
50 | P a g e

Operating business risk

Caught completely off-guard by quick turnaround in fortunes of the automobile sector, on the back of governments fiscal
stimulus package
Finally when it began to shift gears
-

Tier II and Tier III players in the forging, casting and fabrication industry who had laid-off skilled and semi-skilled labour,
found it difficult to get them back.
Bigger players sceptical about stimulus led demand, wanted to wait before making fresh investments (yet in cash
conservation mode)

Estimates for High-Growth

According to an ACMA-E&Y study

Domestic demand expected to jump from $ 30 billion (2009) to $ 119 billion (2020)
Exports expected to jump from $ 3.8 billion (2009) to $ 29 billion (2020)
1.2 million people to be added to workforce
Share in Indias GDP 2.1% to 3.6%

To tap this demand, domestic industry:

1) Needs to scale up significantly
Challenge margins are wafer thin
Auto-majors compensate only for increase in cost of raw-material
Industry left with very little surplus
2) Should attract talent in a big way
If India has to become a true global car mfg. hub, engineering skills would have to be dramatically ramped up.
Many millions of young engineers prefer IT over the shop floor
3) Should enhance product development capabilities
Delphi (once a part of GM), made the instrument cluster for Tatas Nano 30% cheaper than competing products
(looking to leverage this advantage with other manufacturers as well)
4) Tier II and Tier III players must either grow or consolidate rapidly
51 | P a g e

Global giants like Bosch, Continental and Delphi are building, buying capacity & eyeing local firms to tap India as a
market and a low-cost manufacturing destination
Wake up call for 500 odd domestic part makers, who at times cannot handle orders larger than 50000 units.

4.4 Re-imagining the Organization with the transformed business model or Use-case based
on SMAC and IOE

52 | P a g e

In a recent interview, executives from Robert Bosch GmbH and McKinsey discussed the Internet of Everything (IoE) and its
impact on manufacturing. They described significant changes to the production process and to the management of supply
chains from this fourth industrial revolution.
The IoE allows for the interconnection of factories within and across regions and the exposure or display of the status of
each component of each product for each customer via each distribution method. Sensors in machines and in components
will be able to keep universally in synch about what has to be done, what has been done and how well it was done.
53 | P a g e

A global decentralization of production control is now possible. Creating this reality will require new forms of intercompany
and interdisciplinary collaboration. The buyer, seller and distributor will all be involved in product design, engineering, and
logistics. Today, physical flows and financial flows and information flows are different for manufacturing. The IoE vision has
them increasingly fusing together.
In this coming future state information, via the cloud, will be real-time available to all concerned parties. The decisions to be
made based on this information will be subtle, situation-sensitive, and so voluminous and time dependent that people wont
be making them. Algorithms running in machine-machine (M2M) systems will.
Changing the trading cycles for Wall Street are recent, real examples that provide a roadmap for the manufacturing
transition. In that world the number of days allowed to settle a trade, the settlement cycle, has undergone major
transitions. The most notable was from 5 days to 3 days, so-called T+5 to T+3, occurred in 1995. That change required
almost every firm in the US to make some changes to their processing flows and systems. Since the move to T+3 various
exchanges have made further improvements towards T+1.
T+1, even if never mandated, can be viewed as an example of industry opportunity through dislocation. At some level, IoE
capabilities can enable dramatic cycle time gains by unlinking end-to-end dependencies (e.g. I no longer need to affirm
trades based upon evaluating confirm trade messages). Some entities/roles will become more independent, some more
dependent.
The parallels for manufacturing in an Internet of Everything world are clear (though some elements used in trading may not
be used here or at the same level of emphasis). Cross-industry governance will be needed on the format and import of
transactions, acceptable technical modes of sending and receiving the messages, management of the quality and timing of
the messages both in content and technically, and how to handle disputes.

54 | P a g e

55 | P a g e