Bosch says innovations are driving its growth globally

According to preliminary figures, the Bosch Group increased its sales by 6.2 percent in 2014, to 48.9 billion euros (Rs 373,791 crore). After adjusting for exchange-rate effects, sales growth was 7.2 percent. Earnings before interest and taxes (EBIT) came to nearly three billion euros (Rs 22,932 crore), with an EBIT margin of roughly 6.1 percent. This is roughly one percentage point better than the value for 2013, adjusted for one-off and extraordinary effects.

“Despite difficult economic conditions, we managed to meet our business targets for 2014,” said Dr Volkmar Denner, chairman of the board of management of Robert Bosch GmbH. “Our innovation strategy is paying off. Our business success over the past year is proof of this. In 2014 we further improved our market position and competitiveness in many areas.” In addition, the acquisition of BSH Hausgerate GmbH and ZF Lenksysteme GmbH it to strengthen its position in the two growth areas of smart homes and automated driving. 

The German component major has 94 engineering sites worldwide housing 45,600 staffers engaged in R&D. The company, which spent 4.7 billion euros (RS 35,926 crore), which is approximately 10 percent of its total sales revenue in 2014, filed a total of 4,593 patents last year or 18 patents every working day!  

Bosch’s Mobility Solutions – formerly Automotive Technology – business sector achieved significant sales growth in 2014. With its comprehensive portfolio of components, systems, and services, this Bosch sector was able to grow more than twice as fast as the automotive market. The major drivers of this growth were gasoline direct injection systems and high-pressure diesel injection systems, along with display instruments and infotainment systems. 

Worldwide, the Bosch Group’s workforce totaled some 290,000 associates on December 31, 2014. That is some 9,100 more people than in the previous year. Most of this recruitment took place in central and eastern Europe and in Asia. 

According to its latest forecasts, Bosch is expecting economic growth in 2015 to be moderate. Current forecasts project global economic growth of 2.7 percent. Despite these conditions, the Bosch Group is expecting 2015 to deliver further sales growth and further improvements in result and margin. 

In the years to come, the Bosch Group is aiming to seize the business opportunities that will present themselves through developments in the areas of connectivity, automation, electrification, and energy efficiency, as well as through the increasing importance of emerging markets. “We want to play an active part in shaping the wide-reaching and profound changes to our market and technological environment, and we want to prepare for a connected world,” Denner said. This is particularly true of the Automotive Technology business sector, which Bosch renamed Mobility Solutions at the beginning of the year. Denner added: “We see ourselves as a supplier of solutions for the mobility of the future, which will be automated, connected, and electrified. That includes components, systems, and software solutions as well as services.” 

Asia – growth with local developments
In developing its innovative solutions, Bosch says it places great importance on local development expertise in emerging markets. “In 2015, too, innovations will be major drivers of our sales growth. Local developments for each market are especially important,” said Denner, who is also responsible for research and advance engineering on the Bosch board of management. In 2014, Bosch opened a second research and development centre for mobility solutions in Vietnam. In India, the company has opened a research and technology center with a focus on connected technologies for the internet of things. 

Single European digital market key for successful innovations
Bosch’s CEO sees connectivity over the internet as a major driver of technological development. Denner stressed that connectivity offers numerous opportunities not only for the Bosch Group but also for Germany and for the whole of Europe. However, for connectivity to become a business success in Europe, he feels that the establishment of a single digital market is essential.