Bosch Group in India

Bosch Group in India

Bosch opened its first representative office in Calcutta, India in 1922. Bosch started operating in India in 1951 and set up its first manufacturing operations in 1953 and by 2011 they had grown over to 11 manufacturing sites and four development centres. In the business year 2011 Bosch had about 25000 employees in India and generated a revenue of over Rs 113,000 million.

The business segments in India could be segregated into four segments

• Automotive technology
• Industrial technology
• Consumer goods and building technology
• Engineering and IT services

The division of the various segments into their respective business units is as below

Bosch’s Legal entities in india

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Verticalization of Bosch group in India

Reasons for verticalization in India

Like the rest of the Bosch group outside India even India had a geographical based division . The indian operations were managed under the country head with linkages to the various business divisions, which were product based divisions largely focused on European market.  The directors of Bosch Limited in India had overall responsibility for running the business in India. They identified the areas of growth and then formulated the strategies to pursue them. They coordinated with product groups to pursue the national strategies.

The Genesis of the verticalization process was the poor performance of the North America region. There was no need for India to go through the verticalization process since India as a geographic division was doing really good. There net revenues were really high and they were one of the best geographic division of the Bosch Group. But since there were changes being made at a global level , the Indian operations were also getting affected and hence India also had to go through Verticalization.

Changes made by Verticalization in India

The verticalization process in india started in 2007 with vishwanathan taking over the role of the Country Head when he returned to India after several roles within the Bosch Group in Europe and North America.

The philosophy underlying verticalization is to have  a product strategy for the world. It will result in an international production network with all the plants within a family of products being connected to each other. It allows best practices to be shared,ensures consistency in manufacturing processes, facilitates balancing of production capacities to deal with surges in some regions and maintains quality standards across the world. The changes that were done were

• Link Indian operations to other countries
•  Increase the set of product divisions
•  Allow best practices, ensure consistency in manufacturing processes and facilitate balancing of production

Opportunities

The process of verticalization made way to a lot of new opportunities for the Indian Bosch Group

Greater Visibility for smaller Divisions:-

The divisions that felt neglected before because of being small in terms of revenue generation were now directly reporting to the global business heads and so were the dominant divisions like Diesel Division .

New Career Opportunities:-

Bosch employees of India now had the chance to pursue careers in global divisions and obtain greater impact and visibility in Bosch’s global operations.

New Opportunities to Contribute Globally:-

With verticalization the chances of sharing of technology and best practices across various geographical divsions helps in taking the organization as a whole at a new different level. Helps in using cost effective technologies throughout all the geographical divisions and hence help in increasing revenue.