Engineering and technology major Bosch has allocated ₹480 crore for research and development (R&D) and an additional ₹480 crore for capital expenditure (capex) this year, President and MD, Guruprasad Mudlapur, said during the annual report launch.
The investment will be allocated to various categories, including advanced technology such as manufacturing and future core products. “Over the next decade, India presents immense growth potential in the areas of innovation, technology, quality and manufacturing depth,” he explained.
Based on its robust performance in the previous quarters, the company is optimistic about the future. It anticipates achieving a double-digit growth rate of 15 per cent for the current year, driven by significant increases in volumes, content, and premiumisation.
Q1 performance
Bosch saw its net profits for the first quarter grow 22.6 per cent to ₹409.8 crore from ₹334.1 crore during the corresponding quarter last year. Revenue from operations rose 17.3 per cent to ₹4,158.4 crore (₹3,544.4 crore) during the period under review.
Overall, the year has been highly favourable, marked by substantial growth. “Mobility solutions remain the dominant segment, constituting approximately 87 per cent of our business turnover in the country, followed by consumer goods (10 per cent), energy, and building technology (3 per cent). Our order book is currently robust, and we have secured a €5-billion business spanning multiple years for powertrain solutions.”
Hydrogen engines
Mudlapur mentioned that Bosch India is set to unveil the BS6 Stage-2 hydrogen engine truck by early 2024, showcasing its commitment to hydrogen engines. The successful launch of its first hydrogen-powered demonstrator vehicle in India in June 2023 further demonstrates progress in this direction, following the earlier announcement about the pilot Hydrogen Engine Testing infrastructure in Bengaluru.
Bosch expects to see pilot numbers of hydrogen-powered trucks running on the roads by 2026, and they are optimistic that by 2030, approximately 10 per cent of the overall trucks will be powered by hydrogen.
Investing in people
“By investing in our people, we aim to enhance their capabilities and maintain our position at the forefront of the industry. Exciting times lie ahead as we navigate the evolving landscape of the Indian market,” Mudlapur added.
With the ongoing infrastructure boom, which includes the development of new metro lines, airports, and other projects, the domestic market is experiencing an increased demand for power tools. “Keeping in line with the growing demand, we plan to introduce more power tool solutions while maintaining a strong focus on localisation,” he said, adding, “Additionally, as the country sees an infrastructure boom such as newer lines of metros, airports, etc., the domestic market is able to consume more power tools, so we are bringing more power tools solutions while continuing with a focus on localisation.”
In India, Bosch has 17 manufacturing sites and seven development and application centres. The Bosch Group in India employs over 38,700 associates.