CHAPTER- 1

INDUSTRY PROFILE1.1 AUTOMOTIVE INDUSTRY

The automotive industry designs, develops, manufactures, markets and sells the

world motor vehicles. In 2008, more than 70 million motor vehicles, including

cars and commercial vehicles were produced worldwide.

In 2007, a total of 71.9 million new automobile were sold worldwide. Around

the word, there were about 806 million cars and light trucks on the road in

2007: the burn over 260 billion gallons of gasoline and diesel fuel yearly. The

numbers are increasing rapidly especially in India and china.

1.2 INDIA

An embryonic automotive industry started in India in the 1940s. However for

the next 50 years the growth of the industry was hobbled by the socialist

policies and the bureaucratic hurdles of the license. Following, the economic

liberalization in India from 1991 and the gradual easing of restrictions on

industry, India has seen dynamic 17% annual growth in automobile production

and 30% annual growth in export of automotive components and automobiles.

India produces around 2 million automobiles currently. Total turnover of the

Indian automobile industry is expected to grow from USF 34 billion in 2006 to

122 billion in 2016. Tata Motors has launched Tata Nano, the cheapest car in d

world at USD 2200.

Indian automotive industry is contributing a significant portion to overall

Indians GDP. This sector is growing and promising a lucrative future.

Automotive sector also provides wide business and employment opportunities.

With the liberalization of economy, the decades old monopolistic environment

of the Indian automotive industry where only a handful of vehicle models were

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available with a long waiting list, gradually gave way to a highly competitive,

complex and rapidly changing market which was not limited to domestic

market alone. Today the number of vehicle models available are more than

hundred and not a month goes without offerings of newer and more advanced

mode.

Ironically for the Indian automotive industry, the cost of technology

development has increased manifold and increasing product cost has put a

squeeze on profit margin affecting their ability to outsource expensive

technologies. Moreover, the technologies are not so easily available from

outside .Instead of giving a license or setting up joint ventures with an industry,

many intentionally renowned automobile manufacturers have started

production in India to take advantage of grate commercial opportunities Indian

market offer. Even in the existing joint venture, the control has slowing moved

into hands of MNCs.

Indian automotive industry urgently needs technologies to produce fuel

efficient, environmental friendly, lighter, safer and cost competitive engines,

and vehicles. Advanced material and manufacturing techniques, technologies

for using alternative fuels, emission abatement, fuel economy improvement,

safety enhancement, engine management systems, and embedded vehicle

control system are some of the areas where we must focus our efforts.

1.3 AT PRESENT, INDIA IS THE WORLD’S

Largest tractor and three wheel vehicle producer

Second largest two wheel vehicle producer

Fourth largest commercial vehicle producer

Eleventh largest passenger car producer.

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CHAPTER- 2

COMPANY PROFILE

2.1 BACKGROUND AND INCEPTION OF THE COMPANY

BOSCH Group founded in 1886 in Germany as a workshop for precision

Mechanics and Electrical engineering by Robert BOSCH Group. The

BOSCH Group today is the largest automotive technology supplier in the

world with a global group turnover of 47.3 billion Euros in the

automotive technology, industrial technology, consumer goods and

buildings technology in the fiscal 2010.

Robert BOSCH Group GmbH is a widely known company the world

over, with presence across six continents. It has more than 300

subsidiaries and regional companies in over 60 countries. If its sale and

service partners are included, then Bosch is represented in roughly 150

countries. Bosch operates 260 manufacturing locations worldwide of these

200 are located outside Germany in Europe, North and South America,

Asia, and Australia. The company employs more than 283,500 associates

worldwide.

The name Bosch is synonymous with innovation in automotive

technology, industrial technology and consumer goods and building

technology. The company is not just famous for automotive technology

products like Gasoline, Chassis systems and Car electronics, it is also a

pioneer in the areas of automation technology, metal technology,

packaging technology, power tools, heating technology, house hold

appliances, car multimedia systems and security systems. In 2010, BOSCH

Group filed 3800 patent applications across the globe.

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The special ownership structure of the BOSCH Group guarantees

financial independence and entrepreneurial freedom of the Bosch group,

making it possible for the company to plan over the long–term and to

undertake significant up front investments in the safeguarding of its

future. 92% of the shares capital of Robert Bosch GmbH is held by

Robert Bosch sifting GmbH, the charitable foundation.

The slogan “Invented for Life” is part of its long tradition, through

which it communicates the Group’s core competencies and vision, that

includes technological leadership, modernity, dynamics, and quality and

customer orientation.

2.2 ABOUT BOSCH LIMITED

Bosch has been present in India for more than 80 years –first via

representative office in Calcutta since 1992, and then from 1951 via its

subsidiary Bosch Limited (formerly Motor Industries Company Limited)

Bosch Limited (then MICO) began operations with a two man team in

Chennai; its activities were importing and marketing BOSCH Group

automotive products. Soon after the company set up a manufacturing

plant for sparkplugs and fuel injection equipment for diesel engines in

Bangalore.

Bosch Limited today is the country’s largest auto component

manufacturer and also one of the largest Indo-German companies in

India. The BOSCH Group holds close to 71.18% stake in Bosch Limited. The

company is headquartered in Bangalore with manufacturing facilities in

Bangalore, Nasik, Naganathapura, Jaipur and recently-opened facility in

Goa. The plants are TS 16949 and ISO 14004 Certified. Bosch Limited has

its presence across automotive technology, industrial technology and

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consumer goods and building technology, with strength of over 11,700

associates. The company recorded a turnover of Rs. 6630 crores in 2010.

The company has excellent R&D and manufacturing capabilities and a

strong customer base. Its market leadership is testimony to the high

quality and technology of its products. It also has a strong presence in

the Indian automotive services sector. Bosch’s service network spans

across 1,000 towns and cities with 5000 sales outlets and over 4,000

authorized representatives who ensure widespread availability of both

products and services.

Bosch Ltd: - Bosch is also represented by five other group companies in

India.

1. Robert Bosch Engineering and Business Solutions Ltd: - Robert

Bosch Engineering and Business Solutions Ltd., a 100% subsidiary of

Robert Bosch GmbH, which is present in India since 1998, has emerged

as one of the largest Bosch development centres outside Germany. It

provides end to end engineering and technology solutions for all the

business sectors of automotive technology, industrial technology,

consumer goods and building technology.

2. Bosch Rexroth India Ltd: - Bosch Rexroth India Ltd., established in

1974 in India, serves customers through its manufacturing facilities and

service centres in Ahmadabad and Bangalore.

3. Bosch Chassis Systems India Ltd: - Bosch Chassis Systems India Ltd.,

established in 1982 as Kalyani Brakes Limited in India, is amongst the

leading manufacturers of brakes in the country. It currently

manufactures a range of Hydraulic Brake Systems meeting the stringent

quality norms of many leading Indian and international vehicle

manufacturers.

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4. Bosch Automotive Electronics India Private Ltd: - Bosch

Automotive Electronics India Private Ltd. is a 100% subsidiary of

Bosch Group and is engaged in the manufacture and sale of electronic

devices and electronic control units. The Company is based at

Naganathapura in Bangalore.

5. Bosch Electrical Drives India Private Ltd: - Bosch Electrical Drives

India Private Ltd. is a joint venture company. It drives for various

automotive applications such as window lift drive, wiper system, engine

cooling fans etc.

Robert Bosch Worldwide

The Bosch Group is one of the world’s biggest private industrial corporations.

Headquartered in Stuttgart, Germany, the Bosch Group has some 280,000

Executives worldwide, and generated annual sales revenue of 38.2 billion

Euros in 2009. There are about 300 subsidiary and regional companies around

the world.

History of Bosch

1886 Opening of Workshop for Precision Mechanics and Electrical

Engineering in Stuttgart on 15 November

1887 First low-voltage magneto from Bosch for stationary petrol

engines

1897 First low-voltage magneto ignition for motor vehicle internal

combustion engines

1901 First plant in Stuttgart

1902 First commercially viable high-voltage spark plug

1906 Production of 100,000th magneto ignition

1906 Introduction of eight-hour working day

1910 Opening of plant in Stuttgart-Feuerbach

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1913 Start of production of headlights

1918 American assets seized; later become American Bosch Magneto

1926 Start of production of windscreen wipers

1927 First diesel fuel injection pump

1929 First TV Set from Fernseh AG division

1932 Formation of Junkers & Co.

1932 First power drill from Bosch

1932 First Blaupunkt car audio

1936 First diesel fuel injection pump for passenger cars, such as the

Mercedes-Benz 260D

1942 Death of the company founder Robert Bosch on 12 March

1962 Worcester Bosch Group opens in England

1964 Robert Bosch Foundation

1970 Company headquarter moves to Gerlingen

1976 First oxygen sensors

1978 Worldwide first Anti-lock Braking System (ABS)

1979 First electronic engine management system (Motronic)

1982 Company acquires photographic equipment division from Braun

AG

1986 Traction control system (TCS) on the market

1995 Acquisition of Atco-Qualcast Ltd

1995 First Electronic Stability Control - Electronic Stability Program

(ESP®)

1997 Common rail diesel fuel injection

2000 DI-Motronic gasoline direct injection system

2003 Acquisition of Buderus AG

2003 Digital car radio with MP3 drive and digital recorder (Blaupunkt)

2003 The formation of the Robert Bosch Tool Corporation and

acquisition of S-B Power Tool Corporation

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and Vermont American Corporation including the brand names for

Bosch Power Tools, Skill Power Tools, Dremel, Vermont-American,

Primark brands, and Gilmours

2004 Third-generation common rail diesel injection for cars, with piezo

injectors

2004 Bosch opens new Technology Center in Abstatt

2006 Bosch acquires Telex Communications, a maker of hearing aids,

headsets and audio equipment, and partners with Daewoo to build Bosch

refrigerators in Mexico

2007 The Bosch Communications Systems business unit is created to

manage the brands and products of former Telex Communications

2008 Tata Nano, the $2,500 People's Car powered by Bosch-designed

engine is unveiled at Auto Expo in New Delhi. Bosch plans to acquire

majority stake in Ersol photovoltaic’s.

2009 Bosch acquires LR Nelson, a maker of lawn and garden products,

including ponds, and merges the Gilmour’s and Nelson brands into

Bosch - Garden and Watering.

2009 Manufacture of Electronic Control Unit and Anti lock Brake

System.

2010 Bosch started production of predictive emergency braking system,

which alert of emergencies & automatically applies brakes if needed

2010 Launch of A4000 pump meeting BS3 norms of commercial

vehicles in India

2.3 NATURE OF BUSINESS CARRIED

Automotive Technology

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Business divisions: Diesel and Gasoline Fuel Injection Systems, Car

Multimedia Systems, Auto Electricals and Accessories, Starters and

Generators, Energy and Body Systems.

Industrial Technology

Business divisions: Packaging Machines, Special Purpose Machines, Solar

Energy

Consumer Goods and Building Technology

Business divisions: Power Tools, Security Systems

2.4 BOSCH VISION

Creating Value – Sharing Values

As a leading technology and services company, we take advantage of Bosch

global opportunities for a strong and meaningful development. Bosch ambition

is to enhance the quality of life with solutions that are both innovative and

beneficial. We focus on Bosch core competencies in automotive and industrial

technologies as well as in products and services for professional and private

use.

We strive for sustained economic success and a leading market position in all

that we do. Entrepreneurial freedom and financial independence allow Bosch

actions to be guided by a long-term perspective. In the spirit of Bosch founder,

we particularly demonstrate social and environmental responsibility – wherever

we do business.

Bosch customers choose us for Bosch innovative strength and efficiency, for

Bosch reliability and quality of work. Bosch organizational structures,

processes, and leadership tools are clear and effective, and support the

requirements of Bosch various businesses. We act according to common

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principles. We are strongly determined to jointly achieve the goals we have

agreed upon.

As associates worldwide, we feel a special bond in the values we live by – day

for day. The diversity of Bosch cultures is a source of additional strength. We

experience Bosch task as challenging, we are dedicated to our work, and we are

proud to be part of Bosch.

2.4.1 BOSCH MISSION

BeQIK – Be Better, Be Bosch – Profit secures our growth

Quality

Innovation

Customer Orientation

BeQIK gives us the bearing for our actions. Our objective is to continuously

improve all our internal processes – so that growth and economic success can

be secured in the long term.

BeQIK

Quality is our most valued asset

Innovation today ensures businesses tomorrow

Customer orientation inspires customers and associates

BeBetter

We want continuous improvement

We want to be better than our competitors

BeBosch

We offer outstanding products and services worldwide

We keep our promises

2.4.2 QUALITY POLICY

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We strive to exceed the expectations of our customers by offering

products and services of high quality standards.

Quality encompasses our assets throughout their life cycle, and our

initiatives towards environmental protection and safety.

We effectively deploy methods and told to provide cost effective

solutions to meet our quality objectives.

We involve our business partners in our endeavor towards

improvements across the supply chain.

Quality Principles

Our goal is to fully satisfy our customer’s expectations through our

quality of our products and services.

Quality and quality improvements is every associate’s responsibility and

ultimate goal from our board of directors to their apprentices.

Our directives, processes, systems and goals are based on requirements

from international standards, consumer’s expectation, our knowledge

and experience. Knowledge of and compliance with these directives and

processes in the foundation of our quality.

Quality means doing right in the beginning thus preventing failures in

the end. Continues improvements for quality of processes lowers costs

and improves productivity.

Avoiding failure is more important that eliminating defects. We

systematically apply methods and tools, preventive quality assurance

systematically, learn from mistakes and prevent their root causes

without delays.

Our suppliers contribute systematically to the quality of our products

and services. Therefore our suppliers have to live up to standards we

have adopted.

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2.5 PRODUCT/SERVICE PROFILE

Product Range

A. Automotive Technology – Robert Bosch

Diesel Systems

Common Rail System for passenger cars, commercial vehicles &

off-highway vehicles

Axial Distribution injection pumps

Multi Cylinder Inline Injection Pumps (PE)

Single-Cylinder Injection Pumps (PF)

Elements

Delivery Values (DV)

Governors

Injection Timers for PE pumps

Fuel Filter & Water Separators

Glow Equipment

Electronic Control Unit

Gasoline system

Electronic Control Unit

Fuel Injectors

Lambda Sensors

Engine Speed Sensors

Knock Sensors

Hot Film Air Mass Meter

Pressure Regulators

CVT Belts

Connectors & other plastic parts

Starters & Generators (Auto Electrical)

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Starter Motors

Generators

Spark Plugs

Spark plugs for 2, 3 and 4 wheelers and industrial applications

Long Life Plugs :Nickel Yttrium & Twin Electrode

Test Equipment & Diagnostics

Fuel Injection Pump Calibration Test Benches

Nozzle Tester

Auto Electrical Test Bench

Diagnostic Tool : KTS series

Engine Analyzer : FSA series

Engine Analyzer : BEA series

Chassis System Check

Battery Service Equipment

Wide range of service tools for unit & vehicle repairs

Software / Teach ware : ESI ( tronic ), MSI, K-CD

B. Industrial Technology

Industrial Equipment

Special Purpose Metal Cutting / Grinding / Honing / Lapping/ Super

Finishing machines.

Semi / Fully Automatic Assembly Machines

Semi / Fully Automatic Inspection & Measuring Equipment

Cleaning Machines

Electro-Chemical Machines

Tools, Gauges & Fixtures

Exhaust Gas Re-circulating Unit (EGR)

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Test Equipment

Bosch Packaging Machines

Vertical Form Fill & Seal Machines

Dosing System – Cup Filler, Auger Filler, Weighed & Pump

Pharmaceutical Packaging Machines

Confectionary Processing & Packaging Machines

C. Consumer Goods & Building Technology

Bosch Power Tools

Construction Tools

Wood Working Tools

Metal Working Tools

Cordless Tools

Do- It Yourself Tools

Lawn & Garden Tools

High Pressure Water Jets

Specialty Tools

Pneumatic Tools

High Frequency Tools

Automation Technology

Accessories for all Tools

Fischer Fixing System

Bosch Security Systems

Fire Detection

Intrusion Detection System

CCTV Surveillance

Access Control

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Integrated Security Management & BIS

Public Address & Emergency Sound System

2.6 AREA OF OPERATION

The Bosch Group is one of the world’s biggest private industrial corporations.

Headquartered at Stuttgart, Germany. There are about 300 subsidiary and

regional companies around the world.  In India, Bosch is a leading supplier of

technology and services, and has a strong presence in the country at numerous

locations in diverse industry segments.

Bosch Limited is India’s largest auto component manufacturer and also one of

the largest Indo – German company in India. Bosch Limited has a strong

nationwide service network which spans across 1,000 towns and cities with

over 4,000 authorized representations to ensure widespread availability of both

products and services. The company is headquartered in Bangalore with

manufacturing facilities at Bangalore, Naganathapura (near Bangalore), Nasik,

Jaipur and Goa.

Number of Branches in India

Bosch manufacturing facilities are located in Bangalore with state of the art

plants in Bangalore, Naganathapura, Nasik, Jaipur and Goa. All the 5 plants

are TS 16949 and ISO certified.

Bangalore Plant

Manufactures multi cylinder, PE pumps, mechanical governors, elements,

delivery valves, special purpose machines, packaging machines, power tools

and will foray into the production of common rail pumps from 2006 onwards.

Built areas 109.948m2

Land area 311.140m2

Employees more than 5500

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Nagnathapura Plant

RBIN (Bosch Ltd. India) Naganathapura Plant, inaugurated in the year 1990, is

the 3rd plant among the 4 plant of RBIN. The plant houses productions hangars

for Spark Plugs, Glow Equipment, Starter Motors, Alternators, Regulators and

PF Pumps. Portions of the plant are leased out to RBAI and Bosch Training

Center.

Built area 47.494m2

Land area 266.100m2

Employees more than 1279

Nasik Plant

Set up in 1969 is specialized in manufacture of clinical and Euro series of

nozzles and injectors to automobile industries recently the Nasik Plant has

ventured into the production of CRI ports catapulted by Bosch Endeavour in

common rail technology.

Built area 67617m

Land area 405.060m2

Employees more than 2500

Jaipur Plant

Set up in 1999 the Jaipur plant manufactures BE (Mechanical) pumps for

domestic market and export purpose. The VE pump (Distributor fuel injection

pump) is designed to meet Bharat state 11 & Euro 11 emission norms. These

pumps are used in 3-6 cylinder vehicles.

Built area 16345m2

Land area 202350m2

Employees more than 1200

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COUNTRIES COVERED

Middle-East and Africa (UAE, EGYPT, KENYA), Neighboring countries (Sri Lanka,

Bangladesh,) South East Asia (Philippines, Thailand, Indonesia).

2.7

OWNERSHIP PATTERN

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Since 1964, Bosch’s majority shareholder has been Robert Bosch Stiftung

GmbH, a charitable foundation. The Stiftung carries on the charitable and

social endeavors of the company’s founder in contemporary form. It sees itself

as a foundation that pursues its objectives both with programs and institutions

of its own, and by supporting suitable projects and initiatives proposed by

others for tackling the tasks faced by society.

Today, the Robert Bosch Stiftung, a charitable foundation, holds a 92 percent

stake in the share capital of Robert Bosch GmbH. The share dividend received

by the foundation is used exclusively for charitable purposes, i.e. to support

general medical care, international understanding, social work, training and

education.

2.8 COMPETITORS INFORMATION

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Robert Bosch

Stiftung GmbH

92% Beteiligung

Kein stimmrechtFamilie Bosch

8% Beteiligung

7% stimmen

Robert Bosch

Industrietreuhan

d KG

0.01% Beteiligung

93%stimmen

ROBERT BOSCH GmbH

Stammkapital 1.2 Mrd EUR

Modi Champion

Delphi

Denso

Doowon

Electrex

Nippon

NGK

Siemens VDO

Zexel

Cav England

Lucas

TVS

2.9 INFRASTRUCTURAL FACILITIES

Bosch infrastructure is one of the best in the country. The individual work place is

designed as per the international standards which make the employees feel

comfortable, proud, happy and safe.

Medical Facilities

Medical centre works round the clock and also provides a 24 hours ambulance

service

The company has also associated with important hospitals, labs and senior

medical consultants in the city for the treatment of the employees

They are provided with annual master health check-up

Special schemes like hospitalization scheme, Manipal hospital scheme and

Medical reimbursement scheme are provided to the employees

Canteen Facilities

Food is provided to all the employees and 24hrs a day providing breakfast,

lunch, dinner, tea/coffee and snacks for 8500 employees in 4 shifts.

It is well equipped and accommodation for more than 1500 persons at a time

The food provided in the organization is 100% hygiene.

Workings of the canteen is guided by an advisory committee

Transportation Facilities

The company provides transport facilities for employees

Library Facilities

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The company has the facility of both general and technical library

The general library is used by the project trainees also

Other Facilities

Sports club

Fine Arts Society looks into the cultural events and various programmes

conducted during the course of the year.

Uniform, shoes, socks and soap is given to employees on the job by Bosch.

Accident benefit scheme

Holiday homes and time share holidays

Vehicle expenses and reimbursement

Death relief scheme.

2.10 ACHIEVEMENTS/AWARD

February 1, 2012: Bosch Limited wins Car & Bike Award 2012

The accolades and awards keep rolling in for Bosch Limited. Once again,

Bosch Limited was the proud winner of the Subros Car & Bike Award 2012 in

the “Best Automotive Component Manufacturer” category.

Bosch Wins “Car & Bike” Award 2011

Receiving yet another glory in its 125th Anniversary Year, Bosch Limited was

conferred with the Car & Bike India Award in "Best Auto Component

Manufacturer" category. The Car & Bike Award function was held at Mumbai

on January 13, 2011. Bosch was adjudged the best among two other nominees,

namely Delphi and Endurance.

Jan. 07, 2010: NDTV Car & Bike Award - ‘Automotive technology of the

year’

This accolade recognizes the contributions made by Bosch in India, for

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localizing ABS (Antilock Braking System) production. Bosch is the only

automotive supplier to manufacture ABS in India for passenger cars and light

commercial vehicles. ABS is crucial to safety while driving, as it makes

braking safer, by preventing the wheels from locking.

April 15, 2009: DHL - CNBC TV18 International Trade Award

Bosch won this honor in the category of auto component industry, for doing

extremely well in exports through its low-cost solutions. The award recognizes

the company’s commitment and innovations that address the needs of the

Indian market, and keep Brand India alive.

Feb. 20, 2009: NDTV Car & Bike Award – ‘Auto component

manufacturer of the year 2009’

Bosch was chosen as the best in the auto component industry of India for the

year 2009. These awards are considered as benchmarks for auto excellence in

India and widely trusted by consumers, manufacturers and auto experts alike.

The award recognizes the best in the automobile industry of India.

Jan. 7, 2009: UTVi Autocar Award

Bosch and Mahindra & Mahindra won the ‘Best Innovation of the Year’ UTVi

Autocar Award. The award recognizes Bosch innovation start/stop system

which contributes to fuel efficiency at a very reasonable cost. The Mahindra

Bolero Micro Hybrid is the first vehicle in India to integrate this technology in

their new car.

June 21, 2008: Business Standard Award ‘Star MNC of the year’

Bosch was noted for its cutting edge technologies, especially for designing and

delivering low cost high quality fuel injection system and for pioneering the

common rail system in India.

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Jan. 10, 2008: NDTV Car & Bike Award - 'Car Technology of the year'

Bosch not only setup the common rail injector and pump manufacturing

projects in record time, but also pioneered the new application of Common Rail

in low cost car segment. This is a revolutionary leap achieved by Bosch in

India, which is the pioneer of Common Rail technology in the rest of the world

as well.

Jan, 12, 2007: NDTV Profit Car & Bike Award 2007 – ‘Automotive

Technology of the year'’

Audited by PricewaterhouseCoopers, these awards honored the best in the

Indian automotive industry for their handiwork in calendar year 2006. Bosch

was presented with the award for its application of ABS / ESP technology. 

Jan. 4, 2007: CNBC-TV18 Autocar Auto Award – ‘Auto Component

manufacturer of the year’

Bosch Limited was chosen for the mark that it has made both in the domestic

and international markets with its superior technology and products. These

awards seek to reward exemplary performance in the industry in 2006 based on

a comprehensive set of attributes including design, technology, value, product

experience and so on. The selection process truly reflects the choices and

sentiments of all stakeholders and justifies their stature as benchmarks in auto

excellence.

Aug. 17, 2006: Dun & Bradstreet American Express Corporate Award

-–‘Top Indian company in the Auto Components sector’

The award recognizes the twin virtues of size and growth in the organizations

of corporate India, from a derived list of top 500 companies in the country.

Bosch Limited was selected as the best amongst the top 10 auto component

manufacturers in India.

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Aug. 10, 2006: EEPC Award – ‘Star Performer for outstanding export

performance’

The Engineering Export Promotion Council (EEPC) conferred the '‘tar

Performer'’for outstanding export performance in the large enterprises category

on Bosch Ltd, which garnered a total export figure of Rs 423 crores in 2005,

almost twice as high as Rs 193 crores in 2001.

Jan. 12, 2006: NDTV Profit Car India Award – ‘Safety & Technology

Award’

Bosch was presented with this award for its pioneering work on the new age

direct injection diesel fueling systems, with notable emphasis in the range of

common rail diesels. Also taken into account was the persistent focus on unit

injector systems which are entering the scene in the high profile high aspiration

D-segment cars. The jury considered not just the technology but its bearing on

safety, and the benefits it brought to automotive users as well as the potential it

has for India.

Jan. 8, 2005:  Overdrive–Auto Monitor Award – ‘Auto component

manufacturer of the year’

Recognized for innovations in technology and the scale and size of

manufacturing capabilities, the award also commemorated the customer

satisfaction earned by Bosch over the years, performance, quality and diverse

range of products.

This Annual Award is the “Oscar” for the automobile industry in India and

recognizes the “best” in the industry in association with reputed industry bodies

like CII, SIAM & ACMA.

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2.11 WORK FLOW MODEL

The work flow model of Bosch can be interpreted in two phases

Information flow

Material flow

Bosch believes in the concept of “customer is king” this is depicted in the

workflow model which starts with customer signifying the pull system of

production (i.e. production against customer order). Sales and marketing

department receives purchase order from the customer. R&D division takes

decision with respect to product design and specification. Engineering wing

analyses the order and decides upon in house manufacturing or outsourcing.

The next step is to procure the component and assembling the final product, or

acquire raw materials and convert it into finished product. Finally dispatch the

end product to logistics department, which is entrusted with the responsibility

of transit of consignment to the ultimate consumer.

2.12 FUTURE GROWTH AND PROSPECTS

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The auto component industry appears to have a bright future with the existing

manufacturing planning and capacity and in addition moreover new plants are

being setup with foreign collaboration.

The Indian auto component industry is highly fragmented with over 3000

players in organized sector and estimated 500 units in the small sector.

Vocationally the industry has developed major vehicle manufacturing centers.

Small and medium enterprise sector is keen on taking a number of technology

investment initiatives in order to become self reliant and globally

competitiveness according to a confederation of Indian Industry survey report

on auto component.

The survey reveals that Indian small scale enterprises manufacturing auto

components are well equipped to produce components as per international

standards. These SMEs have now started talking strategic positions in the

international markets at both the original equipment manufacturers and the

replacement supply.

The last few months have seen a virtual boom in the Indian automobile

industry with not only domestic component manufacturing shares but also the

formidable biggies also entering India in such a manner that it is increasingly

turning out to be a lucrative destination for many companies.

The other growth plans are

Focus on strengthening or engineering competencies and infrastructure

in new product lines.

Focus on securing liquidity position.

Cost reduction without hurting the long term interest of the business.

Import substitution projects.

Continuous improvement activities and implementing lean practices

through Bosch Production System (BPS), continue with redesign of HR

policies and practices to attract, retain and motivate employee.

CHAPTER - 3

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MCKINSEYS’S 7S FRAMEWORK

3.1 STRATEGY

Strategy is the systematic action allocation of resources to achieve company

goals. A strategy is defined as “a coherent set of action aimed at gaining a

sustainable advantage over competitors by improving the market position and

effective allocation of resources vice versa.

Hr Strategy

It pays special attention to competence management and filling up of executive

positions in growth regions, special entry programs to attract qualified

university graduates and applicants with professional experience. Train and

develop the younger generation of apprentices/ engineers who are the future

skilled technicians and managers.

Corporate Strategy

Bosch economic strategy corresponds to a common aim of the group for

innovation, independence and integrity. The aim is to be among the world

market leaders and to be a major player in all of the company business sectors.

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Bosch Bangalore Plant Organization

Board of Directors

Plant Commercial

Plant TechnicalPlant Quality

The strategy to achieve this goal is by strong marketing of new products and

ongoing investment in Research and Development to innovate continuously.

The emphasis on innovation is underlined by huge number of associates,

working in Research and Development departments, 21250 world wide.

Efficient sales and customer service also play a key role in Bosch’s corporate

strategy.

Innovation

Bosch shall focus their innovative strength on technology that is “INVENTED

FOR LIFE.” Bosch has invested heavily in R&D much above the industry

average. This has resulted in Bosch pioneering many technological advances

Anti-locking braking systems

Electronic stability control

High pressure diesel injection

Parking assist systems

3.2 STRUCTURE

The design of organization structure is a critical task to the top management of

an organization. It is the selection of the whole organization edifice.

Organization structure refers to the relatively more durable organizational

arrangements and relationships. It prescribes the formal relationship,

how an organizational member’s procedure exists. To guide the various

activities performed by the member of all part of the organization.

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3.3 SYSTEM

System refers to formal process and procedures use to manage the organization

including the management control system performance management

measurement and reward system, information system and distribution.

Human Resource

The HR organization uses its human resources strategy to support the divisions

in the pursuit of their objectives. This involves the consistent application of the

balanced scorecard. This method is used by executives.

The HR organization’s missions are based on the House of Orientation and

contribute to closer alignment with the strategic objectives of the company. The

“House of Orientation” provides a frame of reference for Bosch long term road

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map and for the way Bosch works together. It is based on Bosch values and

core competencies.

Environment Management

Bosch has been expanding the environment management systems at Bosch sites

since 1996. Now, the 300 sites have been certified to ISO 14001. Bosch

implemented a maturity model for all manufacturing and developing sites,

which will serve as the basis for further improvements in environmental

protection, occupational safety and fire safety.

Occupational Safety Management

Bosch implemented a new occupational safety management system based on

the globally recognized OHSAS 18001 standard. One of the systems main

functions is to detest potential accident and health risks for associates in order

to take appropriate preventive measures in good time. The new system is to be

implemented at all manufacturing sites in no more than two years. This makes

Bosch one of the forerunners in global implementation of the OHSAS 18001

standard.

Bosch Production System (Bps)

It was installed in 2002. It is a systematic production system in Bosch. In

general it is called as Lean manufacturing. Just in Time (JIT) is one of the

systems in Bosch production. In this the right parts produced at the right

quantity should reach the assembly time at the right time.

Approaches in Bosch Production System

The right part

In the right quantity

In the right quality

At the right cost

At the right time

At the right place

Quick Response System (Qrs)

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System designed to respond quickly to any problem/issues in the production.

Example – Every system has three machine indicators: Red (machine

breakdown), Yellow (shortage of materials), and Green (process completed for

that machine)

3.4 STYLE

Style is the leadership approach in the top management and the company’s

overall operating approach. Style impacts the norms that the people follow and

how they work and interact with each other and the customers. The leadership

style depends upon the organization culture that is in practice.

Bosch Ltd has participative kind of leadership style where in the leader consult

with the subordinate, a proposed action, decision and encourages, ensures equal

participation among them. The style adopted by the management is to maintain

a friendly and collaborative environment for smooth running of the

organization.

Bosch Guidelines for Leadership

1. Aim for success: - Profit, growth, quality, customer and process orientation.

These are the key metrics with which our corporate objectives are aligned.

Regularly communicate these objectives to your associates. Make it clear what

each individual can contribute to achieve it.

2. Demonstrate initiative: - Together with your associates, generate new ideas

and strategies that make our company stronger. Encourage them to embrace

change and take initiative on their own and support them in the

implementation.

3. Demonstrate courage: - Stand by your associates. Make clear decisions and

demonstrate determination in implementing them. Be a role model and

exemplify the Bosch values.

4. Keep your associates informed: - Of course you give your associates

factual information.

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They should also know the business context and background – they are an

important prerequisite for identification with the company.

5. Lead by goals: - Delegate tasks and give your associates the authority to

perform them. Agree on clear goals and allow sufficient space so that

creativity, self-confidence, and accountability can be developed. This enables

you to lead your associates to success.

6. Give feedback to your associates: - Recognize the strengths of your

associates and help them to utilize and further develop them. Take a close look:

praise your people where praise is due, but also give fair and constructive

criticism. Mistakes happen on both sides. Be quick and open in addressing

them with the associate.

7. Trust your associates: - They are capable and willing to perform. Have the

courage to manage with limited control. Your trust will create the

entrepreneurial momentum that all of us want.

8. Shift your perspective: - Put yourself in your associates' position and also

look at things from their point of view. How would you react to the decisions

you have taken as their supervisor, and what rationale would you expect to

hear.

9. Shape the future together: - Your associates can and do contribute to our

company. Integrate them into the preparation of decisions and capitalize on the

ideas and the potential that the cultural diversity of our company offers. Work

together with your associates to transform mere interfaces into connection

points, and barriers into opportunities.

10. Develop your associates: - Advise and systematically support your

associates in their professional development. Support them if there are suitable

opportunities for, or if they desire, further development somewhere else in the

company.

3.5 STAFF

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The staff at Bosch Ltd is considered as a pool of resources to be nurtured,

developed, guarded and allocated. There are about 3650 employees in the

organization. Permanent employees are 2550, temporary employees are 500, on

job trainees are 600.

Levels at Bosch Ltd - MANAGEMENT AND SUPERINTENDENT STAFF

GM – General Manager

DGM – Deputy General Manager

Gr.1 – Senior Manager

Gr.2 – Manager

Gr.3 – Deputy Manager

Gr.4 – Assistant Manager

Gr.5 – Senior Engineer

Gr.6 – Officer

Gr.7 – Assistant Officer

Managerial And Supervisory Staff (M&Ss)

Managerial and Supervisory Staff refers to a salaried professional or an

educated worker who performs semi-professional office, administrative and

sales co-ordination task. They are board occupational grouping of workers

engaged in non-manual labor.

Blue Coloured Associates (Bca)

A blue collared associate is a member of the working class who typically

performs manual labor and earns an hourly wage. Blue collared associates

work may be skilled or unskilled and may involve manufacturing, mechanical

work, maintenance repair and operations maintenance of technical installations.

3.6 SKILLS

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There are 6 different skill groups within the skills framework. Community

leadership skills, leadership skills, management skills, occupational/technical/

professional skills, core skills, skills for life. The other skills groups are

GENERIC SKILLS are those which should be possessed by each and

every employee in order to carry out the task successfully. Skills like

problem solving, decision making and communication form the basic

important generic skills.

SPECIFIC SKILLS are those which should be possessed by the

employee to carry out his/her assigned specific task. Example: Time

management, shop floor management, building teams, leadership and

motivation, creativity, industrial safety and environment.

BOSCH SKILLS - The employees according to the nature of the jobs posses

following skills

Functional

Quality

Information Technologies

Behavioural/ Human Relations

Managerial

3.7 SHARED VALUES – BOSCH VALUES

Bosch Values are those values which are applied and followed by all

Executives faithfully.

Future and result focus: - In order to ensure dynamic development of our

country and to guarantee long term corporate success, we participate in

shaping the changes in markets and technologies.

Responsibility - We accept that our actions must accord with interests of

society.

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Initiative and determination - We act on our own initiative, with an

entrepreneurial but accountable spirit, and demonstrate determination in

pursuing our goals.

Openness and Trust - We inform our associates, business partners and

investors in a timely and open fashion of important development within our

company.

Fairness - We view mutual fairness as a condition of our corporate success

when dealing with each other and with or business partners.

Reliability, credibility, and legality - We promise only what we can

deliver accept agreements as binding and respect and observe the law in all

our business transactions.

Cultural diversity - We are aware of our company’s regional and cultural

origins and at the same time regard diversity as an asset as well as a

precondition of or global success.

CHAPTER - 4

SWOT ANALYSIS

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4.1 STRENGTHS

High customer satisfaction.

Established brand image around the world over the centuries.

Continuous improvement of products and quality.

Employee development given at most important.

Cost reduction strategy is good.

Good infrastructure facility.

Leadership through innovation.

High employee morale.

Effective decision making, information sharing and authority

distribution.

Less employee turnover.

High quality and eco-friendly products.

4.2 WEAKNESS

Experience and skilled employees are not in right position because of

ineffective allocation.

Decision making will be delayed because of long procedure.

In certain situations centralized management is followed.

Marketing of products is given less importance.

Adaptability towards change is low.

No diversification of business.

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4.3 OPPORTUNITIES

Continuous innovation of products.

Bosch can foray into other line of business as it has a good brand image.

It can produce new machineries using high technology.

Potential to grow in power tools, packaging and security systems.

It can produce more economical and eco-friendly products.

It helps to compete with other companies

Quick cost effective adaptation of product to market requirement of

Indian market.

4.4 THREATS

Increase in competition.

Too many substitute products available in the market.

Brand image being diluted due to entering into many products.

Growing bargaining power of companies.

Continuous cost pressure.

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[` in Thousands (TINR)]

2011 2010

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