Bosch technology all over the world

Often in the background, but always

indispensable.

B2B PIC Presentation

Group Members:
Neerav | Nicole | Prabhash | Shrikaant | Sonal

Founded in

1886 in
Germany by

Robert
Bosch

Privatel
y owned
company

Sell products
in over

150
countries

350

Over
subsidiaries in

60

over
countries.

Bosch increases its International

presence through acquisition

& investments in various

281,381
Employees

4,964
first-filed patents
worldwide in 2013
Bosch opened its first
international sales

London in
the year 1898 . By
1913, it was
office in

generating over 88
per cent of its sales
outside Germany.

plants.
2

Percentage of sales region wise

In the year 2013, Bosch International made a profit of

1,251million Euros
3

Strategic Competencies
Strategic far- sightedness
Innovative strength
Efficient processes
Quality and reliability
Global presence
Human resources development

Porters Five Forces

Threat of new entrants
De-licensing has opened the market for newentrants.
However, there are still many barriers to entry for theauto
components market. Initial capital is very hugein the
organisedmarket restricting smaller players.
Technology and quality demands arevery stringent
As OEMs constitute the largest customer segment, component
manufacturers get into strategic long term relationships, esp. for
high value items
Other advantages to existing players includecustomer service
and distribution network.
We can conclude that threat of newentrants is moderate

Porters Five Forces

Bargaining power of suppliers

Raw material cost comes to 50-60% of the total

production cost.
Suppliers to the auto component sector include
companies from the electronics, fabrication, plastic
andrubber, casting/forging, machine tools industries.
Bargaining power is lowfor high technology products.
Unorganized sector dominates the domestic component
market due to excise benefits. Generally, excess supply
persists.

Porters Five Forces

Bargaining power of customers
Bargaining power of customers is very high
The demand for auto ancillary products is linked to automobile
demand. Demand is derived from
OEMs: LowMargin, LargestDemand,StringentRequirements
ReplacementMarket:HighMargin,PresenceofSmallcompetito
rswithcheaperprices
Exports:HighMargin,IncreasingDemand,FocusonQuality
Which means
The OEM market is very competitive and component
manufacturers have to compromise on margins to bag
bulkorders
Moreover, delivery schedules and quality standards have to be
adhered tovery strictly.

Porters Five Forces

Threat of Substitutes
The only substitutes to auto component manufacturers are organised
component players working closely with R&D teams of OEMs. However,
this threat is very low
The unorganised components market faces a greater threat
asreplacement market consumers are shiftingto genuine components.
Rivalry among Competitors
Competition is moderate
At the domestic level, market structure is fragmented for a large
number ofancillary products. Most companies adopt low cost and
differentiation strategies. In some products (like batteries), only two or
three companies control over 80% of the market.
Competition in coming period is expected to intensify, as global players
enter the market leading to consolidation.

SWOT
Strengths

Extensive Focus on R&D

Quality of products Customer Loyalty
Balanced portfolio
International Foothold
Competency in automotive core components

Weaknesses
Slow procedures leading to additionalcosts
Boschs manufacturing sites in high-wage countries in Western Europe

Opportunities

Increased demand
Renewable energy sector
Hybrid Car components
Innovative new technologies

Threats
High competition
Demand fluctuations in automotive sector

INDUSTRIES
Automotive
Packaging Technology
Energy and Building solutions
Power Tools
Thermo technology
Household Appliances
Security Systems
Engineering and IT services
10

Auto Component
Industry

Introduction
Auto components
sector contribution
to GDP

Foreca
st
automotive
component to
be a
US$100billion
industry by
2020

Revenue of
Indian auto
component
sector

Today

Auto components
exports from India

automotive
component is
about US$ 35.1
billion
12

Market

Domestic market share of

Indian auto component
industry

Caters to the
original
equipment
manufacturers
(OEMs)
Consists of
high-value
precision
Caters mostly
instruments
to the
aftermarket
category
Comprises lowvalued
products
13

Market
Majority of Indian auto component exports are to countries in
Europe, which account for 35 per cent followed by countries in
North America with 26 per cent.
The export of auto components showed a great deal of
improvement registering a growth of 16.7 per cent to Rs 61,487
crore (US$ 10.04 billion) in 2013-14 from Rs 52,690 crore (US$
8.61 billion) in 2012-13.
Also, with the automotive sector being a key driver of the
economy and growth returning to vehicle consumption in the past
few months, ACMA expects the industry to grow by 46 per cent
in FY15.
The cumulative foreign direct investment (FDI) inflows into the
Indian automobile industry during the period April 2000 August
2014 was recorded at US$ 10,119.68 million, as per data
published by the Department of Industrial Policy and Promotion
(DIPP), Government of India.

14

Investments
Honeywell Turbo Technologies has entered into an agreement
with Tata Group to develop its first ever petrol turbocharged
engine. The new Tata Revotron 1.2T engine launched in the 2014
Tata Zest delivers improved power and torque and a multi-drive
mode.
TE Connectivity, a manufacturer of connectors for electric,
electronic and internet systems, is establishing an integrated
manufacturing facility in Bengaluru at an investment of Rs 300
crore (US$ 49.03 million). The plant, measuring 280,000 sq ft,
will create jobs in areas of assembly, packaging, moulding,
stamping, tooling machine components, cable processes, etc.
TVS Group Company Sundram Fasteners Ltd has reported a 29
per cent increase in net profit at Rs 38 crore (US$ 6.21 million)
during the quarter ended June 30, mainly on increased exports.
A drop in finance charges and a rise on operating margin
supported profit margins has been attributed to the increase of
exports.
Precision manufacturing firm Aequs has opened a new
automotive components plant at its 250- acre Special Economic

15

Government Initiatives
The Government of India is in talks with ACMA and several
industry bodies to extend the current excise duties concession
beyond December 2014. Under the scheme, excise duties have
been reduced for the following segments:
For small cars, motorcycle, scooters and commercial vehicles
duty has been reduced from 12 per cent to 8 per cent.
For mid-sized cars duty has been reduced from 24 per cent to 20
per cent.
For large cars duty has been reduced from 27 per cent to 24 per
cent.

16

Road Ahead
Industry is likely to grow to US$ 150 billion by 2020 with
domestic market share of about US$ 85 billion
Strong growth owing to rising domestic demand in the OEM
market
The decline in raw material cost, such as decrease in cost
of rubber, will help in improving the operating margins and
aid in increasing the exports
Decreasing Global Oil prices will lead to increase in
demand.
17

Product Line
Braking System
Diesel System
Glow Plugs
Auto Electricals
Batteries
Automotive Belts
Horns and Fanfare
Filters
Gasoline System

Auxiliary Lamps
Automotive Bulbs
Spark Plugs
Lubricants
Wiper Blades
Lighting Coils and Stators
Charging Coil
Ignition Coil

18

Customers

19

20

Braking system

21

Brake Booster
The booster amplifies the
force applied by the
drivers foot when pressing
the brake pedal and thus
reduces the required effort.
It is combined with the
master cylinder to form a
single unit and is a
component of a car braking
system.

22

Brake Pads
Brake padsare a
component ofdisc
brakesused in automotive
and other applications.
Brake pads are steel
backing plates with friction
material bound to the
surface that faces the disk
brake rotor.
23

Wheel Cylinder
Awheel cylinderis a
component in adrum
brakesystem. It is located
in eachwheeland is usually
positioned at the top of the
wheel, above the shoes.
Its function is to exert force
onto the shoes so as to
bring them into contact
with the drum and stop the

24

Brake Discs
Adisc brakeis a wheel brake
that slows rotation of the wheel
by the friction caused by
pushingbrake padsagainst
abrake discwith a set
ofcalipers.
The brake disc is usually made
ofcast iron, but may in some
cases be made of composites
such asreinforced carbon
carbonorceramic matrix

25

Brake Shoes

Brake shoes are a part of

the braking system which
carries the brake lining in
the drum brakes used in
automobiles.
Brake shoes belong to the
most stressed part of a
braking system. Extreme
temperature difference can
cause cracking of the shoes.

26

Conclusion

27

Thank You