Business Daily from THE HINDU group of publications
Sunday, Aug 27, 2006
Business Daily from THE HINDU group of publications Sunday, Aug 27, 2006 |
|
|
|
|
|
|
|
Corporate
-
Outlook Bosch mulls manufacturing petrol injection systems in Bangalore K. Giriprakash
Relocation plans By manufacturing petrol injection systems at its Indian plant, there could be pay offs in the area of cost savings. Bosch has relocated manufacture of some key products from locations in Europe to Mico. Packaging machines is another area, which the company is focussing on and there are plans to increase investments in the manufacture of power tools.
Bangalore , Aug. 26 , Bosch, which is the world's largest original equipment maker of petrol injection systems, is exploring the option of manufacturing them at its Indian plant. Mico, which is the Indian subsidiary of Bosch, is also looking at outsourcing manufacture of more and more components to tier 2 and 3 companies. "The depth of manufacturing is coming down increasingly," a top official with Bosch told Business Line. He said Mico might look at manufacturing those in which it has core competency while outsourcing the manufacture of other products. Bosch is the largest original equipment manufacturer of petrol injection management systems and components for vehicle manufacturers globally. There are over 50 million Bosch systems currently in use in petrol engine cars while its petrol injection components cover over 60 vehicle manufacturers. In India, Mico currently imports petrol injection systems.
Packaging
The official said packaging machines is another area, which the company is focussing on and there are plans to increase investments in the manufacture of power tools. By manufacturing petrol injection systems at its Indian plant, there could be pay offs in the area of cost savings. Bosch has relocated the manufacture of some key products from locations in Europe to Mico. These include, single cylinder pumps from the Czech Republic, multi-pumps from Austria and injectors from France. Mico has now become a worldwide supply base for these products. Early this year, Mico announced that it would invest Rs 800 crore over a period of two years while its parent Robert Bosch would invest Rs 500 crore to expand its Indian operations.
Investments on expansion
Around Rs 200 crore will be invested at the two plants in Bangalore and another Rs 600 crore will be invested at the Nashik plant. During the second quarter of 2006, Mico posted a 137.29 per cent increase in net profit to Rs 242.78 crore while its total income grew 21.6 per cent to Rs 930.99 crore.
More Stories on : Outlook | Automobile Components
Article E-Mail :: Comment :: Syndication :: Printer Friendly Page
|
Stories in this Section |
|
The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription Group Sites: The Hindu | Business Line | Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |
Copyright © 2006, The
Hindu Business Line. Republication or redissemination of the contents of
this screen are expressly prohibited without the written consent of
The Hindu Business Line
|