Bosch Malaysia record recovery in 2010
Most of us know Bosch as the maker of electric drills. Some of us who regularly shop for parts will know them for their spark plugs and wiper blades, but for the majority, the Bosch name and brand presence in the market is carried primarily by its tools and household appliances.
Like the Continental brand which is carried primarily by tyres, behind the scenes Bosch is a massive supplier of various parts to a number of auto manufacturers. If you drive a car, chances are there is a piece of Bosch in there somewhere. Bosch’s sales through its Automotive Technology division accounts for 57% of the group’s total sales.
Earlier today, Robert Bosch Sdn Bhd called together a press conference announcing the company’s performance over 2009, 2010 and also its immediate plans for the future. After witnessing a staggering 15% drop in worldwide sales from the previous year in 2009, business is now firmly on the rebound, having registered a 25% increase for the first quarter. Annual growth is targeted at 10% with sales for the 2010 fiscal year expected to close at €42 billion.
In the tumultuous times, the Asia Pacific region was quoted as the stabilizing factor of the Bosch Group’s worldwide operation. Its contribution to the Group’s worldwide sales for 2009 stood at 20%, making it the second most important region after Europe. That share is expected to eventually climb to 30% by 2015, and it is also worth noting that decline in sales for the Asia Pacific region was the lowest compared to other regions which Bosch also operate in.
Zooming into our local shores, Bosch Malaysia’s sales revenue in 2009 dropped by 21% from 2008 to record a final tally of RM396 million, though those losses have since been nicely reversed with a strong first half sales growth of 40%.
“2009 was undoubtedly a very difficult year in the region and especially in Malaysia. Sales droped in 2009, but the recovery has been fast so far. In Malaysia, Bosch is employing some 2,500 associates, which comprises of more than 60 percent of all associates in Southeast Asia, demonstrating our strong commitment ot Malaysia, said Mr Cem Peksaglam, President & Managing Director of Robert Bosch (SEA) Pte Ltd, in addition to being MD of Robert Bosch Sdn Bhd.
Mr Peksaglam added, “We are looking to strengthen our presence further through expanding our production base, especially for future oriented innovative products, the establishment of a R&D company, as well as an increase of our market shares in our business fields in Malaysia.”
Recently in Penang, Bosch has commenced operations of a new R&D company housed in the company’s existing facilities located at Bayan Lepas. The start-up expenditure was for the setup was notably small, as the company made do with personnel and existing resources transferred from other aspects of Bosch’s operation. This, according to Mr Peksaglam, was simply to kick-start the effort and the real investment comes in keeping the centre going. The company currently has 63 research engineers in its payroll.
In Malaysia and the region, Bosch is aiming its focus on the in-car entertainment market producing in-car multimedia systems for use in cars of various classes. Bosch’s involvement in in-car entertainment is nothing new, as the company used to own Blaupunkt, a highly-popular audio brand that has since been sold.
These days, Bosch only supplies ICE units as original equipment to manufacturers and does not sell them to end-users as aftermarket products. This is somewhat unfortunate, as during a tour around the company’s headquarters in Petaling Jaya today, we spotted a particularly nifty 2-DIN ICE system complete with built-in GPS, MP3, DVD, LCD touchscreen, and iPod connectivity.
The unit we were shown is offered as a cost option in the US-market Nissan Sentra (not the same as our N16). It also had a generic looking fascia, and because it fits a standard 2-DIN slot and is compatible with steering-mounted controls, we reckon there’s a huge aftermarket potential for this product. Bosch currently offers this unit alongside other variants as original equipment for car manufacturers to buy off the shelf.
In addition to generic units, Bosch is also very capable of designing custom tailored solutions to suit higher-end clients. One notable highlight of its considerable portfolio is the interface of the in-car entertainment system featured in the all-new Jaguar XJ. The added challenge for Bosch in this project was to ensure that its system was compatible with 1,200W Bowers & Wilkins audio setup.
Moving forward, Bosch has a positive outlook for its prospects for the remainder of 2010. Its Drive & Control technology division, Bosch Rexroth, registered 29% growth this year. Its Automotive Aftermarket and Security Systems divisions each recorded notable double-digit growth respectively. Its Power Tools division, the most visible part of its business, is similarly targeting double-digit growth with introduction of various new products.
)
