The Hindu Business Line : Bosch drive to counter slowdown

Applying the brakes
Periodic shutdown of different manufacturing hangars
Temporary shutdown effected at some plants
Taking steps to protect permanent employees

K. Giriprakash

Bangalore, Dec. 15 The world’s largest auto parts maker Bosch will not renew contracts for up to 300 of its trainees and others in its plants in India even as it is taking steps to rejig its manufacturing operations to combat recession.

Sources close to the company told Business Line that the trainees at Bosch’s various plants have not been offered jobs at the close of their training period. But the trainees, as well as those working as casual employees, could be called back whenever they are required.

Sources said Bosch is taking measures to protect the jobs of its permanent employees. It is also carrying out periodic shutdown of different manufacturing hangars while the production of some of its marquee products such as common rail diesel injection units as well as starter generators has slowed down because of the economic recession.

The production of its VE Pumps has also slowed down considerably because of the lock-out at its Jaipur plant.

Compensation to staff

Sources said during this month, some of the hangars will be shut down for a couple of weeks but employees will be given full compensation even though they will not work during the shutdown period. Bosch has its factories in Bangalore, Naganathapura, Jaipur, Nashik and Goa.

A Bosch spokesperson had earlier said that it is trying to de-risk its business model by planning to double revenues from the non-automobile business to about 30 per cent by 2015. Currently, 87 per cent of the total revenues is generated from Bosch’s automobile business.

Bosch has during the last few months effected temporary shutdowns in some of its plants. In November, the company shut down some parts of its manufacturing facilities in Nashik and manufacture of starters and generators at its Naganathapura plant.

During the first week of December, it again shut down temporarily select production areas, shops manufacturing nozzle holders, DN Nozzles and common rail injector assembly, at its Nashik plant. This was done to adjust production to meet the demand for products and to avoid unnecessary inventory build-up.

These measures come at a time when Bosch has announced buy-back of its shares as it tries to consolidate its operations in India.