The auto components major, Bosch, which expects a revival in growth of the automotive industry in the second half of the current year, intends to incur Rs 700 crore of capital expenditure this year.]
Bosch’s officials told a conference call with analysts here today that they expect the company expects to do better than the industry in the current year. In 2011, the company achieved a turnover of Rs 8,163 crore and a net profit of Rs 1,123 crore. In the first quarter of 2012, Bosch’s turnover was Rs 2,295 crore and net profit Rs 336 crore, which were 10 per cent and 22 per cent higher respectively over the corresponding quarter of last year.
On top of the Rs 700-crore spend this year, the company intends to further incur a capital expenditure of Rs 600 crore next year, the officials said.
Bosch today has 500 service stations and plans to add around 50 more each year for the coming few years.
Bosch is a major player in the diesel segment and 60 per cent of its sales comes from there. It is also among the larger suppliers of common rail direct injection (CRDI) systems in India. Bosch buys half of the components required for the CRDI systems (by value) locally. The management intends to raise this gradually.
Bosch’s ‘power tools’ business fetched Rs 560 crore in sales in 2011, compared with Rs 467 crore in the previous year. Angel Broking expects this to grow to Rs 672 crore in the current year.