Bosch Ltd, the Indian unit of the German engineering and technology company, aims to increase localisation by an additional 2 to 3 percent by next year. While the company currently relies on and is experiencing growth in the goods it manufactures and trades, it plans to boost the use of localized materials in its offerings. To achieve this, Bosch intends to localize finished goods developed outside its network and focus on enhancing its supply chain to incorporate more local products from suppliers.

“In the last year, Bosch localised injectors, power tools, and also spark plugs,” said Guruprasad Mudlapur, President Bosch Group India, and MD, Bosch Ltd.

He further added, “Localisation starts with a relatively low level, roughly around 30 per cent, when introducing new technologies; for instance, BS 6. In the case of BS 4 products, we achieved an extensive localisation level, reaching around 70-75 per cent. There are specific areas where we have surpassed 85-90 per cent localisation, whereas typically in newer technologies, the rate of localisation is low. However, these percentages continually increase as technology evolves and adoption expands.”

The company recorded a net profit rise of 14 per cent to ₹466 crore in Q1FY25 from ₹409 crore in the corresponding quarter last year.

Bosch saw a rise in topline of 3.8 per cent to ₹4,316.8 crore (₹4,158.4 crore). Increased demand for premium cars, commercial vehicles and changing consumer preferences propelled positive growth in the quarter, said Karin Gilges, Chief Financial Officer, Bosch Ltd.

The challenges during the quarter included maintaining profit margins, geopolitical tensions and rising costs of raw materials.

“Material costs account for about 65 per cent of our product mix, so these higher costs have affected our sales and overall business performance. However, we are optimistic that these issues will be resolved in the next fiscal year,” she added.

The shares closed at ₹32,464.85, showing a decline of 0.72 per cent on the BSE.

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