Localisation and cost competitiveness in the Indian automotive industry

Abstract

Started as a brain child of Robert Bosch in the year 1886, German multinational company Bosch has established itself as the one of the largest suppliers of automotive components all over the globe. Robert Bosch GmbH operates through its 440 subsidiaries and regional companies all over the world. Robert Bosch Stifung GmbH, a charitable foundation, is the primary investor having 92% of the total share capital in Robert Bosch GmbH. The Bosch family and the Robert Bosch GmbH hold the remaining of the share capital in the company. This ownership structure acts as the biggest proponent for entrepreneurial freedom and strategic investment decisions for the future growth of the company. Headquartered in Gerlingen, near Stuttgart, Germany and with an employee base of 300,000 spread across 60 countries, Bosch managed to obtain revenue of 49 Billion Euros in the financial year of 2014 from its worldwide trade operations. 78% of this total operation came from operations outside Germany. Spanning over 150 odd countries, Bosch caters to the need of the industry by manufacturing core products like automotive components, industrial and building equipment. On the basis of these product categories, Bosch has segmented its operation into four verticals i.e. automotive technology, industrial technology, consumer goods, energy and building technology. With a vision of development and sustenance, the Bosch group is continuously innovating for the holistic welfare of the society. Bosch invests around 10% of its total annual revenue towards research and development. This led to the filing of 4,500 patents in 2014 alone for the future development of high performance, efficient and eco-friendly products. In total Bosch group accounts for around 77000 patents and utility models through its worldwide operations.