German technology and services supplier Bosch Limited on Wednesday announced an investment of Rs 250 crore as part of its plans to construct a new manufacturing facility in Bidadi near Bangalore.
“The company has acquired 97 acres of land in Bidadi for the construction of a new manufacturing facility and is investing over Rs 250 crore for its initial development,” Bosch said, adding that the company has decided to move its existing manufacturing facility from Adugodi, in Bangalore, to Bidadi as part of a strategy that underlines its commitment to India and especially, Karnataka.
Karnataka Chief Minister K Siddaramaiah attended the new facility’s ground breaking ceremony on Wednesday in Bidadi and laid the foundation stone along with Bosch Managing Director Steffen Berns.
“The developing industrial area in Bidadi will offer larger space and better infrastructure support for our future expansion. Though the current business situation is tough, this move (moving of manufacturing facility) will help us cater to the growing business needs of the Indian market in the long-term,” Berns told delegates and invitees at the ground breaking ceremony of the facility.
The new facility will be ready for commencement of production by the third quarter of 2015 with relocation of around 850 employees from Adugodi and it will house the production of several components of diesel fuel injection systems.
Meanwhile, the company will be converting the present Adugodi facility to carry out R&D activities. According to Bosch Joint Managing Director Soumitra Bhattacharya, “Bosch will invest around Rs 1,500 over the next seven years towards development of both Bidadi and Adugodi projects.”
Berns said that with more manufacturing clusters coming up, akin to the one in Bidadi, there is more scope for employment of local youth.
Meanwhile, Chief Minister Siddaramaiah reflected that the manufacturing sector is key for growth, economic development and prosperity. “Our objective is to make Karnataka the most investment-friendly destination in the country,” he added.