Bosch to expand despite market slow down

Germany’s auto parts maker Bosch Ltd .is still investing heavily on research and development despite expectations of a challenging second half. The company also increased investments on capacity ramp up across its five manufacturing units in India. Bosch Ltd., a unit of the German Bosch group, is the largest Indian auto parts maker by market capitalization. Managing Director V.K. Viswanathan said that the company has about Rs30 billion (US$607 million) as cash on its books as of June. “The general trend we have been seeing for the last couple of months is that growth rates have come down quite sharply, particularly in the passenger car side. The next two to three months are going to be tough,” he said.
Bosch expansion plans
Bosch Ltd. will continue expanding capacity across a wide range of auto components. These include diesel and gasoline fuel injection systems, pumps, starters and generators. Additional capacity is expected to come on ground by early next year. “We are not cutting back either on recruitments or investments, we are going ahead with expansion as planned,” Viswanathan said. He added that funds for the expansion will come from debt-free internal accruals. The company employs around 350 engineers working solely on research and development. Viswanathan said they will hire 20% to 25% more. (August 5, 2011)