Looking to expand high-end component manufacturing from India, the ¤41 billion German major Bosch has said it would look at manufacturing electronic control units and anti-lock braking systems (ABS) in the country in the coming years.

“We are looking, (and) could look at electronic products, for instance electronic control units,” automotive group chairman Bernd Bohr said.

Bohr was in India for the commencement of production of common rail high pressure pumps from the company’s Bangalore facility.

Bosch is investing close to Rs 550 crore for manufacturing common rail diesel systems in India and this investment is part of the Rs 1,800 crore funds earmarked for the country till 2008.

Optimistic on the high growth rates as well as low manufacturing costs in India, he said it was the low-cost base for bosch in asia. “India is the low-cost base for Bosch in Asia,” he said, pointing out it is among other cheap manufacturing locations like Turkey, Czech republic, Mexico and Brazil.

Asked about the price benefits of locally manufacturing in India, against importing from a high-cost location, Bohr said it was in the range of 10-20 per cent.

Bohr said in future, Bosch would focus on technologies like ABS and electronic stability program (ESP) for the Indian market. “Bosch has played a crucial role in the development of automotive technology in India and will continue to do so in the coming years,” he said.

ABS could also be among the new products the company could contemplate manufacturing in India, though local demand levels needed to be sufficiently high for that, he said.

Bosch can use Indian group company Kalyani Brakes for manufacturing ABS. The company may use this to extend its worldwide manufacturing base for modern braking systems in India, including manufacture of ABS.

Kalyani Brakes manufactures conventional braking systems and components for passenger cars, tractors, three-wheelers and two-wheelers at its plants in Jalgaon, Chakan and Manesar.

Bosch did a business of around Rs 4,000 crore from India in 2005 through its various companies, including the flagship Mico.

“India is one of the growth markets for our business in the Asia Pacific and we expect business to increase to Rs 4,700 crore in 2006,” he said.

Bohr said india could be one of the world’s five most important automobile markets by the beginning of the next decade. He said india not only played a key role in the production network of Bosch but also in its development activities.

Robert Bosch India limited, a wholly owned subsidiary of Bosch in India headquartered here, is the company’s largest software development centre outside Germany.

http://www.business-standard.com/common/storypage_c.php?leftnm=10&autono=94562