International Business'Our Indian operations are helping us better the technology'
Swaraj Baggonkar / Mumbai January 5, 2010, 0:31 IST
The Bosch Group witnessed one of the worst slowdowns in its history last year, with a double-digit fall in worldwide revenues. The group, however, posted a respectable increase in India during the same year. The company is making more investments into its India operations and aims to replicate the business ideas and variations in technology adopted here for global use. Bernd Bohr, Chairman of the Automotive Group, Robert Bosch GmbH, spoke to Swaraj Baggonkar. Edited excerpts:
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You have six companies operating in India. What is the growth you have posted and what are your projections?
The global economic slowdown impacted Bosch, as it did all manufacturers. Our revenues declined by 15 per cent last year. However, in India, we grew by five per cent, posting an overall revenue of Rs 6,800 crore. There has been a very strong growth in recent months in the Indian automotive segment. We are expecting to grow at 14-15 per cent annually, provided that India’s GDP (gross domestic product) grows at 7-8 per cent. We should post Rs 14,000-15,000 crore in revenues in three to four years, from about Rs 6,800 crore.
How much more investment would flow into India?
We are making an investment of Rs 2,000 crore over the next three years, starting this year. This will be in addition to the Rs 2,100 crore which was invested in 2005 and 2009. Nearly a quarter of these investments will go into further strengthening the group’s research and development activities. Over 80 per cent of our revenues are generated from the automotive technology business in this country.
Bosch is working on a common-rail engine unit for the Tata Nano. Will it be patented for use only in that small car?
We have developed the CRS 1.1 common-rail system for the Nano diesel. The system, which will be produced locally, is the first to feature a high-pressure pump based on a one-cylinder, plug-in pump that Bosch has long manufactured for other applications. We can use this technology in any other vehicle and it is not restricted to the Nano.
You said the company is learning new methods of technology, which is helping you to better the one you use in Europe and elsewhere. Could you elaborate?
Our Indian operations are helping us develop new technology and better the existing one which is operational in Europe. We are able to take the knowledge we have gathered here and change or modify the applications we use globally.
Which are the areas the company is looking at?
We are working towards making the electric car an increasingly common sight on the world’s roads. We have collaborated with Samsung SDI to develop lithium-ion battery technology for automotive applications. These batteries must be able to function perfectly under all imaginable driving conditions and to store enough power to increase the range of electric vehicles to an acceptable level. Above all, the cost of the EV battery system must be reduced significantly.
Are you in talks with Indian vehicle manufacturers?
Along with global OEMs (original equipment manufacturers), we are in talks with some Indian manufacturers also, for developing battery-powered vehicles. We are currently in very promising discussions with several of them. However, this technology needs a lot of work, at least 10 years, for bringing down the cost of the battery. By the end of 2012, we expect to be producing lithium-ion cells to a capacity of more than 600,000 KWh for hybrid and electric vehicles.