Bosch : Growing since 2015

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Robert Bosch, or Bosch, is a German multinational engineering and electronics company headquartered in Gerlingen, near Stuttgart, Germany. The company was founded by Robert Bosch in Stuttgart in 1886. Bosch is 92% owned by Robert Bosch Stiftung.

Bosch's core operating areas are spread across four business sectors: mobility (hardware and software), consumer goods (including household appliances and power tools), industrial technology (including drive and control) and energy and building technology.

Bosch - Company Highlights

  • Startup Name-Robert Bosch GmbH
  • Headquarters-Gerlingen, Germany
  • Industry-Conglomerate
  • Founder-Robert Bosch
  • Founded-15 November 1886
  • CEO-Volkmar Denner

Bosch - About and How it works?

Robert Bosch GmbH, or Bosch, is a German multinational engineering and technology company headquartered in Gerlingen, near Stuttgart, Germany. Bosch Limited is a holding company. The Company operates in the manufacturing and trading of automotive products. Its segments include Automotive Products and others. The Company has presence across automotive technology, industrial technology, consumer goods and energy and building technology.

Bosch Ltd was incorporated in the year 1951 with the name Motor Industries Company Ltd. Initially, the company entered India with establishment of Calcutta office. In the year 1953, the company initiated their manufacturing at Bangalore Plant. In the year 1954, they stared manufacture of spark plugs, single-cylinder diesel fuel injection pumps & nozzle-holders. In the year 1956, they started manufacture of multi-cylinder diesel fuel injection pumps.

Bosch - Logo and its meanin

In 1926, Robert Bosch wrote, “A trademark must also be simple, which is why the famous, good trademarks, the best of the crop, are plain line drawings. Trademarks must be simple and clear if they are going to make an impression and be easily remembered.” And for a hundred years now, his armature in a circle has fitted the bill perfectly.

Bosch - Founder and History

Robert Bosch is the founder of Bosch.

The history of the company started in a backyard in Stuttgart-West as the Werkstätte für Feinmechanik und Elektrotechnik (Workshop for Precision Mechanics and Electrical Engineering) on 15 November 1886. One year later, Bosch presented the first low voltage magneto for gas engines.

From 1897, Bosch started installing better-designed magneto ignition devices into automobiles and became the only supplier of a truly reliable ignition within the industry. In 1902, the chief engineer at Bosch, Gottlob Honold, unveiled the high-voltage magneto ignition system with spark plug. This product paved the way for Bosch to become a leading automotive supplier.

The first factory was opened by Bosch in Stuttgart in 1901. In 1906, the company produced its 100,000th magneto. In the same year, Bosch introduced the 8-hours day for workers. In 1910, the Feuerbach plant was founded and built close to Stuttgart. In this factory, Bosch started to produce headlights in 1913.

In 1917, Bosch was transformed into a corporation.

Bosch - Mission

“We are Bosch” — is their mission statement.

A spokesperson for Bosch said, "We are motivated by the desire to develop products that are 'Invented for life,' that spark enthusiasm, that improve quality of life, and that help conserve natural resources. Our “We are Bosch” mission statement reflects this."

The company’s main mission is to provide cutting-edge technological solutions and to be at the forefront of new technological advancements.

Bosch - Business Model

Bosch's core operating areas are spread across four business sectors:

  • Mobility (hardware and software)
  • Consumer goods (including household appliances and power tools)
  • Industrial technology (including drive and control) and
  • Energy and building technology.

Bosch supplies important parts for many industries which include the part in their final product. One Bosch part is for example the battery component for e-bikes, which then are branded empowered by Bosch” next to the brand of the bike.

Bosch - Revenue and Growth

In 2019, Bosch generated around 77.7 billion euros in revenue. Officially Robert Bosch GmbH, the multinational engineering and electronics company is one of Germany's top brands and among the largest engineering and electronics companies in Germany.

In 2015, the revenue of Bosch jumped by over 20 billion euros. Around this time, Robert Bosch performed several important takeovers that boosted revenue streams. Included is a three billion euro takeovers of a joint venture with Siemens Hausgeräte. The Bosch and Siemens partnership, known as BSH, still operates under the same name producing home appliances. A partnership also existed between Bosch and competitor ZF Friedrichshafen AG. The joint venture, ZF Lenksysteme, were producers of electronic 

Bosch - Funding and Investors

Bosch has raised a total of $42M in funding over 1 round. This was an Undisclosed round raised on Aug 15, 2018.

Bosch - Investments

Bosch has made 21 investments. Their most recent investment was on Nov 6, 2020, when Routematic raised $2M.

Bosch - Challenges Faced

The Indian arm of the German engineering giant had announced a series of production cuts, which impacted performance. The quarter’s Ebitda (earnings before interest, tax, depreciation and amortization) of  ₹483 crore was 10% below the average estimate on the Street. It was also 23% lower year-on-year.

Clearly, negative operating leverage dented profitability in all its segments. Revenue declined across the board in domestic auto sales, export sales and non-auto sales. This dragged net revenues down 15% year-on-year to  ₹2,778.8 crore, which was slightly below analysts’ forecasts.

To an extent, lower commodity prices alleviated the impact of lower capacity utilization. Raw material costs as a percentage of sales were stable. However, employee costs rose by 200 basis points year-on-year. Other expenses were slightly higher, too. Hence, Ebitda margin contracted by 220 basis points to 17.4%, which too was below forecasts.

Bosch - Competitors

The top 10 competitors in Bosch's competitive set are Siemens, DENSO, Valeo, Delphi Technologies, Honeywell, Johnson Controls, Continental, Rockwell Automation, Eaton, Borgwarner. Together they have raised over 119.2B between their estimated 3.4M employees.

Bosch - Future Plans

Bosch Group says that the company wants to keep people active in mobility while improving air quality. Also, in order to make low emissions traffic a reality, the company is investing heavily in making electro mobility a market success along with enhancing the combustion engine.

Bosch Group has announced an investment of Rs 1,700 crore in the next three years in India. The company will use this investment in offering more opportunities for its businesses along with a broader product range. According to the company officials, a majority of this amount will be used for the expansion of Bosch’s smart campus in Adugodi along with the modernization of manufacturing facilities in India. Bosch had invested over Rs 370 crore in the last three years to create its smart campus at Adugodi that is a home to 3,650 of its 18,000 engineers in India. In order to be specific, the company has planned an additional investment of Rs 600 crore for the expansion of its smart campus.

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