Bosch embraces change!

German auto components giant Bosch, which set foot on Indian soil in 1922, has now become a household name – be it in automotive components, or building and security solutions. The company, which is headquartered in Bengaluru, has ‘constantly been in a state of evolution’.

From a supplier of automotive components and technologies, it has diversified into other business areas such as energy, building solutions, consumer durables and electrified solutions.

“Its composition is akin to an onion bulb. Every layer opens up a new facet about the Group and the environment in which it operates,” Soumitra Bhattacharya, Managing Director, Bosch Limited, and President, Bosch Group India says.

“We have made headway from being an intelligent organisation to a connected set-up. For Bosch India, transitioning to a connected era requires a change in mindset. The decision to become a smart, and then eventually a connected company, is not an option but an imperative for long-term success. To embrace the opportunities put forth by the future, Bosch Limited needs to first understand the needs of its existing and potential customer,” Bhattacharya told shareholders earlier this month.

First, the company started a representative office in Kolkata, and from 1951, Bosch is present through its subsidiary Bosch Limited (then Motor Industries Company Limited or MICO).

The Bosch Group operates in India through 12 companies including Bosch Limited, Bosch Chassis Systems India Private Limited, Bosch Rexroth India Private Limited and Robert Bosch Engineering and Business Solutions Private Limited.

Looking forward, the company is well prepared to offer its large customer base an array of full-line solutions, diesel and gasoline included, as the nation transitions from BS-IV to BS-VI emission norms by 2020.

Electrification is future

Recently, Bosch announced its plans to offer a portfolio of electrified solutions for the Indian market. The company foresees electrification as a future growth area in India.

“Today, the Indian supplier base is fragmented for electromobility solutions. With the current powertrain offerings from Bosch India, the company is aiming to bridge this gap and have the first mover advantage,” said Peter Tyroller, Member of the Board of Management of the Bosch Group responsible for Asia Pacific, during his recent visit to Bengaluru.

Currently, the company is in advanced stages of development and plans to move into series production after 2018.

He emphasised three trends that Bosch sees for the future of mobility -- it is automated, connected and electrified. “We especially see the small-vehicle segment driving the transition to mass electrification, as urban dwellers seek a simple and affordable alternative to conventional standards,” he said, adding the powertrain of the future will be a mix of electromobility and combustion engines.

Accoding to him, the Government of India’s initiative to convert the Indian automotive market into an electric vehicle nation by 2030 is another important step. “We believe that electrification in India will first gain momentum via fleet operators. The pre-requisite for the same is shared and connected mobility. As for personal mobility, small vehicles will be essential for this as they make it easier to weave quickly through traffic. Bosch is ready to start its electrification journey in India, first through light vehicles. As the opportunity expands, Bosch India will foray into other segments,” Tyroller added.

In February 2017, Bosch India launched the Connected Vehicle solution for commercial vehicles and passenger vehicle fleets. The product allows the owner to track, trace, geofence and get custom alerts in case of any deviations.

Bosch’s vision for 2020 entails that every product is connected via the Internet of Things (IoT). At Bosch India, several legacy assembly lines have been restructured to achieve higher efficiency and increased productivity while having a lower payback time.

Towards Artificial Intelligence

Artificial Intelligence is a topic that Bosch is planning to deal with greater detail from next year onwards.

“Ten years from now, scarcely any Bosch product will be conceivable without artificial intelligence (AI). It will either possess that intelligence itself, or AI will have played a key role in its development or manufacture,” Bosch CEO Volkmar Denner had said. Within just five years, products featuring artificial intelligence are expected to account for 10% of Bosch sales. “Bosch will use AI to turn things into intelligent assistants. Products will become partners, companions, personal assistants,” the CEO said.

Bosch India is ramping up its AI centre in Bengaluru. Apart from this centre, the Bosch Center for Artificial Intelligence (BCAI) is operational in Palo Alto in the US, and Renningen in Germany.

The BCAI is formed to help Bosch’s greater aspiration to come up with future offerings in IoT, specifically in electromobility.

Targeting the youth

Bosch’s skilling programme BRIDGE (Bosch’s Response to India’s Development and Growth through Employability Enhancement) is targeted at employing the youth in the service industry. From the present 125 centres across the country, it plans to take it to 200 centres.

“Nearly 7,500 people have graduated from this (BRIDGE) skilling programme over four years. Our long-term career-oriented training offered at the Bosch Vocational Center (BVC) has been Indianised over the years, and as of December 2016, around 3,500 individuals have passed out over these years,” Bhattacharya said.

Also, over the past two years, the company has developed a new training programme that focuses on producing high-quality skilled artisans, such as carpenters and electricians, in India.

Mentoring startups

With many companies starting either incubator or accelerator programmes, Bosch also jumped on the bandwagon recently, with the announcement of graduation of 13 startups from its first accelerator programme - Discover, Nurture and Accelerate (DNA).

It said that startups create significant value, and India is one of the crucial hotspots. A proof of that is the variety of startups the Group is partnering with: from a team which converts soot (collected from a diesel generator) to printable ink using a proprietary liquid, to another team which provides customisable home automation solutions.

Taking forward its vision, in future, Bosch India’s accelerator programme will increasingly look to collaborate with those who build technology solutions in areas such as IoT, deep learning, analytics, cloud, virtual reality and block chain.

Wide presence in India

Bosch Limited’s key manufacturing facilities are located at Bengaluru, Bidadi, Nashik, Jaipur, Gangaikondan, Oragadam near Chennai and Verna (Goa). In all, it operates 18 manufacturing facilities and seven development and application centres.

Today, the company maintains its presence across sectors such as mobility solutions, industrial technology, consumer goods, and building and energy technology, while manufacturing and trading products as diverse as diesel and gasoline fuel injection systems, automotive aftermarket products, special purpose machines, packaging machines, electric power tools, security systems, and industrial and consumer energy products and solutions.

In 2016, Bosch earned revenues of over Rs 10,500 crore. Bosch Group employs roughly 3,90,000 associates worldwide (as of December 31, 2016).

The Group in India employs over 31,000 associates, of which close to 18,500 work on areas relating to R&D.