Bosch Ltd, the Indian branch of the German engineering company, plans to increase the use of local materials by 2-3% next year. Currently, the company is growing its manufacturing and trading operations. Bosch aims to incorporate more local products into its supply chain and localize finished goods developed outside its network.
“In the last year, Bosch localized injectors, power tools, and spark glass,” said Guruprasad Mudlapur, President of Bosch Group India and MD of Bosch Ltd. He explained that new technologies start with about 30% localization, but this can reach 70-75% for more established products. Some areas have even surpassed 85-90% localization.
Bosch reported a net profit increase of 14% to ₹466 crore in Q1 FY25, up from ₹409 crore last year. Revenue rose by 3.8% to ₹4,316.8 crore, driven by demand for premium cars, commercial vehicles, and changing consumer preferences, according to CFO Karin Gilges.
Challenges during the quarter included maintaining profit margins, geopolitical tensions, and rising raw material costs. Material costs, making up 65% of the product mix, have impacted sales and overall business performance. However, Bosch is optimistic these issues will be resolved next fiscal year.
Bosch Ltd, the Indian subsidiary of the German multinational Bosch Group, is a leading provider of technology and services in India. The company operates across various sectors, including automotive components, industrial technology, consumer goods, and energy and building technology. Bosch Ltd is known for its innovative solutions and commitment to quality, which has helped it establish a strong presence in the Indian market.
With a focus on localization, Bosch Ltd aims to increase the use of local materials in its products, thereby enhancing its supply chain and supporting local suppliers. The company has consistently reported strong financial performance, driven by its ability to adapt to changing market conditions and consumer preferences.
