Bosch Ltd today announced that its gross sales and income from operations has grown by 7.6 % for the period of April 2016 to March 2017, amounting to Rs 10,983 crore. The financial results were presented by Soumitra Bhattacharya, Managing Director, Bosch Ltd. The company showed that while gross sales have grown by 7.4 % in FY 2016-17, export sales fell by 5.4 %.
The company reported that its Mobility Solutions sector grew by 5.9 % from April 2016 to May 2017, within which the Gasoline Systems business recorded a strong double-digit growth. It added that the two-wheeler business also performed well with considerable growth mainly coming from the domestic market.
In terms of FY 2017, the company noted that a progressive government focussed on reforms, reducing interest rates, expectations of a normal monsoon and improved liquidity post re-monetisation validate its outlook. Additionally, reforms like Goods and Service Tax (GST), smart cities and stable political situation will contribute to moderate growth in both automotive and non-automotive sectors, added Bosch Ltd.
Bhattacharya said that the company’s business has grown above production volumes of the domestic automotive market, both in the current quarter and the complete year. He added that the company continues to remain cautiously optimistic about the current financial year, while adopting necessary course correction. The proposed roll-out of GST by 1 July, 2017 is expected to cause short-term turbulence, followed by helping India’s growth story in the mid and long-term, noted Bhattacharya.
In terms of investments, the company said it is making continuous investments for the development of manufacturing locations. Bosch Ltd recently broke ground at Bidadi, near Bangalore, for development of the second phase of the existing facility. The second phase is expected to be completed by mid-2019, following which it will have the capacity to accommodate about 2,500 associates. This plant will primarily manufacture new-generation and conventional fuel injection products and components for diesel powertrains. In addition, the company has allocated about 450 engineers who are working exclusively on diesel engine technologies for the upcoming transition to BS VI emission norms.
Bhattacharya also mentioned about the key technologies that Bosch Ltd has developed over the recent past. One of this is the Lean Electronic Fuel Injection System (LEFIS), which was locally-developed by Bosch Ltd, and combines a mechanical pump and electronically-controlled smart fuel injectors. This product was developed for the single-cylinder, three-wheeler market moving into the BS VI emission standards, but now sees expansion in markets outside India, he noted. Another technology is that of connected vehicles for commercial and passenger vehicles, added Bhattacharya.
The Bosch Group globally is said to be working on a number of IoT solutions, which is said to be the company’s biggest challenge, as well as biggest opportunity, Bhattacharya said. He added that IoT also addresses solutions for the mobility of the future, with the company’s target being to become a globally leading IoT provider. Bhattacharya noted that some of the changes expected in future mobility include electrification, automation, connectivity and multi-modality.