Bosch Group, India, which has been witnessing close to 25 per cent growth in business so far this fiscal, is expecting the growth momentum to continue in FY24 backed by “positive and buoyant” market sentiments.
The company had recorded total revenue from operations of ₹11,104 crore and net profit of ₹1,217 crore in FY22.
According to Soumitra Bhattacharya, Managing Director, Bosch Ltd & President, Bosch Group in India, the growth would come from across its various businesses which include both mobility and non-mobility verticals.
Key sectors
Bosch Group is a global supplier of technology and services in four key sectors including mobility, industrial technology, consumer goods and energy and building technology.
“The outlook is very positive. We had targeted a growth of over 15 per cent during FY23 and we have already been clocking close to 23-25 per cent so far this fiscal. We expect that to continue in the next fiscal,” Bhattacharya told businessline during his recent visit to the city for Bosch India’s ‘Back to our Roots’ event.
It is to be noted that the Bosch story in India began with the setting up of the first agency in Kolkata in 1922 and it celebrated “Back to our Roots” by revisiting its 100-year legacy in India.
The company has been witnessing a double digit growth in profitability and has free cash flow of 100 per cent. Bosch Group, India is looking to invest close to ₹2000 crore over the next three-to-four years for building advanced automotive technologies and digital mobility solution. It is also open to the idea of mergers and acquisitions, he said.
Growth drivers
In the beyond mobility space, e-commerce has shown to be a significant driver of growth in the power tools and automotive aftermarket space which accelerated its business and helped further growth in the market post pandemic, the company said in its latest annual report (2022).
Bosch Power Tools in India, with a 30 per cent market share in the tools category, brought in ₹1,265 crore through sales in FY22. This turnover is at an all-time high for the business, and it plans to further integrate advanced technologies into its products and leverage digital solutions, the report said.
Driven by the need for convenience among the customers, the cordless power tools segment aims to double its turnover in this segment by 2023. Given the increasing preference among customers to buy power tools online, the division has added 164 retailers to its e-commerce spectrum, bringing its total count of direct retailers to 1,600. Additionally, the launch of a strong pipeline of products is expected to boost the division’s localisation share to 30 percent in 2023.
“In the non-mobility segment the automotive aftermarket has been growing at double digit,” he said.
Expand service centers
Bosch Automotive Aftermarket division seeks to expand its multi brand car service centers to over 1,000 workshops and take the network strength to approximately 4,000 outlets by 2027.
In the building technology segment, Bosch has seen a high double-digit growth over a low base, and it has won major infrastructure projects in the public and private sectors. There are set plans to capitalise on the business potential available on the infrastructure drive in the next five years across domains like metro-rail, airports, ports, industrial parks, and smart cities.
The company has been witnessing a steady growth in exports, which has increased to close to 10-12 of its total turnover, as compared with 8 per cent earlier. It expects the growth momentum to continue moving forward.