Brose Group targets euro 5 billion revenues in 2014

The Brose Group, which is among the top 40 global automotive suppliers, is targeting an increase in sales revenue from 8 percent to about 5 billion euros (Rs 40,440 crore) in 2014. 

To drive growth, the company’s shareholders have given a nod to a 920 million euro (Rs 7,440 crore) investment program, the largest in Brose’s history. The focus is to be on capacity expansion in the US, Mexico, China and Thailand, but also in Eastern Europe over the next three years. "Our goal is to provide controlled, profitable growth and self-financed," said Jürgen Otto, CEO.

The Brose Group is gunning for new development potential arising from the trends of vehicle lightweighting and efficiency, which are being driven by stricter CO2 regulations in Europe, Asia and the USA. Through functional integration and the use of new materials and technologies, the Brose Group says it has a competitive advantage and believes it is well positioned for the challenges of the future.

In 2013, total sales rose only slightly by 4 percent to 4.7 billion euros (Rs 38,013 crore), the impetus for growth coming mainly from Asia and North America. Half of the revenue was in China and North America. 

The strongest increase was registered in the business area of Seating Systems where sales rose by 13 percent to 1.2 billion euros (Rs 9,705 crore), which represents a doubling since 2010. With this, Brose says it has achieved a global market share of 27 percent in power seat adjusters. 

The global leader in door systems and window regulators strengthened its business with total sales of 2.4 billion euros (Rs 19,411 crore). The electric motors sales revenues rose to 1.1 billion euros (Rs 8,896 crore). In four out of six product fields, the mechatronics specialist is the market leader.

Last year saw the Brose Group invest around 264 million euros (Rs 2,135 crore), or 6 percent of sales, with a focus on the expansion of existing and new production facilities. The company built three new plants in East London (South Africa), Melfi (Italy) and Bremen (Germany), advanced prefabrication in Shanghai (China) and a new high-bay warehouse in Ostrava (Czech Republic).

Photograph: Jürgen Otto, CEO of the Brose Group, shows Dr Shuhai Toyoda, president of Toyota Boshoku, the latest product ideas. Brose aims to significantly expand its activities in the growth region of Asia.