“Bosch technology all over the worldOften in the background, but always

indispensable.”

B2B PIC Presentation

Group Members:

Neerav | Nicole | Prabhash | Shrikaant | Sonal

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Founded in

1886 in Germany by

Robert Bosch

Over 350 subsidiaries in

over 60 countries.

Sell products in over

150 countries 4,964

first-filed patents worldwide in 2013

Bosch increases its International

presence through acquisition & investments in various plants.

Privately owned company

281,381

Employees

Bosch opened its

first international sales office in

London in the year

1898. By 1913, it was generating over 88 per cent of its sales outside Germany.

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Percentage of sales region wise

In the year 2013, Bosch International made a profit of

1,251million Euros

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Strategic Competencies

• Strategic far- sightedness• Innovative strength• Efficient processes• Quality and

reliability• Global presence

• Human resources development

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Porter’s Five Forces

Threat of new entrants

• De-licensing has opened the market for new entrants.• However, there are still many barriers to entry for the auto components

market. Initial capital is very huge in the organised market restricting smaller players.

• Technology and quality demands are very 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 include customer service and distribution network.

We can conclude that threat of new entrants is moderate

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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 and rubber, casting/forging, machine tools industries.

• Bargaining power is low for high technology products.

• Unorganized sector dominates the domestic component market due to excise benefits. Generally, excess supply persists.

Porter’s Five Forces

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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 : Low Margin, Largest Demand, Stringent RequirementsReplacement Market: High Margin, Presence of Small competitors with cheaper pr

icesExports: High Margin, Increasing Demand, Focus on Quality

Which means • The OEM market is very competitive and component manufacturers have to

compromise on margins to bag bulk orders • Moreover, delivery schedules and quality standards have to be adhered to very

strictly.

Porter’s Five Forces

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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 as replacement market consumers are shifting to genuine components.

Rivalry among Competitors• Competition is moderate• At the domestic level, market structure is fragmented for a large number

of ancillary 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.

Porter’s Five Forces

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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 additional costs• Bosch’s 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

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INDUSTRIES

• Automotive

• Packaging Technology

• Energy and Building solutions

• Power Tools

• Thermo technology

• Household Appliances

• Security Systems

• Engineering and IT services

Auto Component Industry

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IntroductionAuto components sector

contribution to GDP

Revenue of Indian auto component sector

Forecast

automotive component to be a

US$ 100 billion industry by 2020

Today

automotive component is

about US$ 35.1 billion

Auto components exports from India

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Market

Domestic market share of Indian auto component industry

• Caters to the original equipment manufacturers (OEMs)

• Consists of high-value precision instruments

• Caters mostly to the aftermarket category

• Comprises low-valued products

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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 4–6 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.

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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 Zone (SEZ) in Belgaum to support its expansion plans in the US and European markets. The plant will roll out engine and transmission parts, sub-assemblies, assemblies as well as add machining capacity of over 100,000 hours annually.

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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.

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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.

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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

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Customers

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Braking system

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Brake Booster

The booster amplifies the force applied by the driver’s 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.

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Brake Pads

Brake pads are a component of disc brakes used in automotive and other applications.

Brake pads are steel backing plates with friction material bound to the surface that faces the disk brake rotor.

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Wheel Cylinder

A wheel cylinder is a component in a drum brake system. It is located in each wheel and 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 vehicle with friction.

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Brake Discs

A disc brake is a wheel brake that slows rotation of the wheel by the friction caused by pushing brake pads against a brake disc with a set of calipers.

The brake disc is usually made of cast iron, but may in some cases be made of composites such as reinforced carbon–carbon or ceramic matrix composites.

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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.

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Conclusion

Thank You