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Annual Report 2017-18

Transforming Lives

Meaningfully

Transforming

Lives Meaningfully

Chairman image

Chairman’s Letter

Holistic change across industries and functions has been the global norm in 2017-18. Business establishments, governments and citizens are thus revisiting how they go about their daily lives. This is leading US President Trump to reverse long-standing policies and Britain to press ahead with BREXIT despite opposition.


My dear Shareholders,

Holistic change across industries and functions has been the global norm in 2017-18. Business establishments, governments and citizens are thus revisiting how they go about their daily lives. This is leading US President Trump to reverse long-standing policies and Britain to press ahead with BREXIT despite opposition. This is compelling businesses as well as policymakers to find innovative solutions to issues that are coming to the surface.

In India, after initial hiccups caused by major policy changes, national GDP growth continues to recover steadily at 6.6 percent. This slowdown can be ascribed to the initial effects of structural reforms such as Demonetization, the implementation of Goods and Services Tax Act and the Insolvency and Bankruptcy Code (IBC), amongst others.

The regional elections scheduled towards the end of the year and national election in the middle of 2019 will play an important role in shaping the economy and its outlook. The government increasingly views higher level of digitalization such as Artificial Intelligence (AI) and Blockchain as an integral part of technology to succeed in the digital era whilst ensuring transparency and conforming to privacy laws. Against this backdrop, Bosch Limited has made its strategic objective clear – become a leading supplier of technology and services in its chosen fields. Every Bosch division functions with that transformation in mind and is investing resources towards it.

Over the Financial Year 2017-18, the Company’s revenue from operations grew by 12 percent. While the automobile sector remains at the core of our operations as markets shift towards connected and automated vehicles, we have visibly demonstrated our readiness for change across all sectors by driving internal changes and adopting the best technologies.

While actively managing transitions such as the introduction of BS-VI emission standards and electromobility solutions, our mobility division experienced a healthy 15 percent growth. Bosch has also forged partnerships with OEMs across segments with a view to gain leadership in these areas. Beyond the mobility division, we witnessed marginal growth of 0.3 percent. Led by innovations in Smart Manufacturing, Smart Surveillance, Energy Efficiency and more, these divisions offer good potential for future growth.

We are revamping business processes by infusing frontend and backend operations with Big Data and analytics to help us serve our customers and partners better, by offering the best in class solutions. Significant investments for incorporating smart manufacturing solutions at the Bidadi and Nashik plants are aiding this transformation, and similar investments are planned for other plants across the country as well. The Company invested ₹ 460 crores on capital expenditure during the Financial Year 2017-18.

Beyond mobility, a significant portion of Bosch’s initiatives are building effective solutions for a connected future. This includes using Big Data for energy compliance, deploying digital solutions to get Bosch Power Tools in the hands of many, and securing urban transportation hubs with smart cameras. As cities and factories become smarter, connected and personalized, Bosch aims to become a recognized IoT leader providing sensors, software and services. We realize that we have the will, expertise and heritage to accomplish this transformation. We shall continue to build solutions for the digital era and beyond. I thank you for your strong support over the years.

Best Regards,

Chairman Signature

 

Managing Director’s Message

The last financial year witnessed turbulent times with geopolitical relations and tariff barriers making it harder for trade policies to function smoothly. This has led to rapid changes globally. However, with the right foresight and digital technologies, organizations can turn this into an advantage and begin to “Transform lives meaningfully”.




Dear Shareholders,

The last financial year witnessed turbulent times with geopolitical relations and tariff barriers making it harder for trade policies to function smoothly. This has led to rapid changes globally. However, with the right foresight and digital technologies, organizations can turn this into an advantage and begin to “Transform lives meaningfully”. At Bosch Limited, we are prepared for this transformation and are actively revamping our organization to succeed in the digital era.

The country’s growth sectors are well charted – transportation, infrastructure and energy efficiency; each of these is undergoing massive change driven by automation, connectivity and digital transformation. With stability and good governance at the center, India is on a sustainable growth curve. Change is an opportunity to shape the future. At Bosch Limited, we remain committed to India’s transformation through our digital growth story while protecting and leveraging our core, which is manufacturing. It is this vision that has enabled us to boost revenue from our operations by 12 percent.

Over the year, Bosch has proactively transformed its business units, upskilled its people and transformed its supply chain ecosystem – and at the heart of this transformation have been digital tools and technologies. The connected future is here, so our adoption of IoT (Internet of Things) tools has been unrelenting. We are creating an ecosystem, led by investments of ₹ 460 crores, where man and machine can talk to each other with the focus on increasing productivity across the value chain.

With more than 130 years of innovations and expertise behind us, thanks to our parent Robert Bosch GmbH’s manufacturing heritage, we have the capability to build and test these solutions. Thus, we have the unique and dual advantage of being enablers as well as leaders. Every division of Bosch Limited now has a unifying mission based on our values. Bosch Limited actively coordinates with its subsidiaries and legal entities such as Robert Bosch Engineering and Business Solutions to provide holistic solutions to its customers for that vision. We are thus leading innovations in Connected Mobility, Smart Manufacturing, Energy Efficiency and more.

The automotive industry in India is on an upward growth trajectory, and this is a trend we see continuing in 2018-19 as well. Diverse categories such as Passenger Vehicles, Light/Heavy Commercial Vehicles, Tractors and even two-wheelers have seen increased demand from 2012 to 2017, and the predicted CAGR for each of these categories are optimistic and encouraging in the near future. Bosch Limited is geared to play its role in sustaining this momentum as a provider of mobility solutions.

However, disruptions due to the upcoming BS-VI transition, which is effective from April 2020, will have an effect on the entire supply chain. While developed countries have undertaken this transition within a timespan of approximately eight years, India is ambitiously setting out to achieve this in a short span of just three years – an immense challenge for the automotive sector. The government’s focus on electrification is also leading to several changes in Powertrain solutions and the need for hybrid systems that offer a mix of traditional Internal Combustion Engines (ICEs) and electrified mobility solutions. Looking back at the annual growth of 15 percent of Bosch’s Mobility Solutions business division in FY 2017-18, we are convinced that we remain on the right path in leading the Indian mobility market to a connected future.

To cater to the changing needs of the mobility industry, we have formed agile project houses that work on Electrification and Connected Mobility solutions. These project houses are working on electrification and connectivity-based services that are enabled by local engineering talent. We know India’s unique driving patterns and road conditions, so we are well placed to lead the way while meeting customer demands across vehicle segments in the country. Bosch also realizes the importance of the vehicle as a third living space and is thus building mobility solutions that are connected, automated and electrified. More automation will naturally lead to more complexity – and we are preparing for that transition by developing and empowering our local engineering talent and partnering with OEMs. Bosch envisions a future that is accident-free, emission-free and stress-free, and we are committed to this vision. Decisive breakthroughs in diesel technology by our parent Robert Bosch GmbH have helped us develop technologies that when fitted on a diesel passenger car, brings down its emission to a meagre 13 milligrams of NOx per kilometer on an average under defined parameters. While the parameters for implementing these engines in India will be different, Bosch Limited is looking forward to making further breakthroughs to implement similar technology for future India.

In fact, transformation at Bosch Limited is not just restricted to mobility solutions alone. We are playing a significant role in securing metros, airports, stations and other places of large gathering such as the M. Chinnaswamy Stadium in Bengaluru with our digitally enhanced smart surveillance solutions. We are also contributing to the growth of India’s infrastructure by getting Bosch power tools in the hands of more workers than ever before. Dealing with India’s vast distances has been a historical challenge, but Bosch’s digitally enhanced supply chains are successfully overcoming this.

Bosch Limited is also extending support to its suppliers and vendors in the SME base by providing plug-and-play Smart Manufacturing solutions that are affordable, thus helping in their transformation as well. By successfully implementing these solutions at Bosch plants, we can ensure their effectiveness before we share them with the wider industry. This offers us a dual advantage as we can reap the benefits of big data and analytics to transform processes and share successful working models with SMEs.

We are also proud of the Bosch India Experience Center (BIEC) – a first of its kind interactive Bosch facility where one can witness Bosch’s milestones through history and its vision for a connected future. In the midst of disruptive transformation today, there is no better place to view our journey to an end-to-end IoT services provider that improves quality of life.

In the upcoming year, Bosch Limited is on a journey of transformation into a leading IoT service provider in the age of digitalization, automation and electrification while also being a ‘Great Place to Work’ for all our associates who are our greatest assets. This can be achieved by adopting a cultural change through a top-down approach and placing customer centricity at the heart of every business decision while also focusing on the vision of – “Transforming lives meaningfully”.

On behalf of Bosch Limited, I invite you to join us on this transformation journey and thank you for your unwavering belief and support. We remain as committed as ever to enhancing shareholder value amid this transformation and look forward to a connected future.

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Growth

Sustained, accelerated growth of Bosch in India

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Collaboration & Synergies

Collaborate and leverage synergies to create sustained value creation

Customer Icon

Customer Centricity

 

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Making Bosch
a great place to work

Make Bosch a go-to place

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Start-up Culture

Encourage innovation and entrepreneurship; engage young talent

Best Regards,

Chairman Signature

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Bosch In Figure

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