MIRA
INFORM REPORT
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Report Date : |
14.06.2007 |
IDENTIFICATION DETAILS
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Name : |
BOSCH CHASSIS
SYSTEMS INDIA LIMITED |
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Formerly Known As : |
KALYANI BRAKES
LIMITED |
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Registered Office : |
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Country : |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
25.05.1982 |
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Com. Reg. No.: |
11-27224 |
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CIN No.: [Company
Identification No.] |
L34300PN1982PLC027224 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
NSKK00678G /
PNEK00047F |
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PAN No.: [Permanent
Account No.] |
AAACK7312E |
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Legal Form : |
It is a public
limited liability company. The company’s
shares are listed on the Stock Exchanges. |
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Line of Business : |
The company is
engaged in manufacturing and selling of hydraulic and air brake
components. It also acts as traders of
brake fluid, hydraulic brake components including rear brake assembly, tandem
master cylinder, front caliper assembly and rotor discs. |
RATING & COMMENTS
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MIRA’s Rating : |
Aa |
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RATING |
STATUS |
PROPOSED CREDIT LINE |
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71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit
transaction. It has above average (strong) capability for payment of interest
and principal sums |
Large |
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Maximum Credit Limit : |
USD 6200000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
Subject is a well
established company having fine track. Available information indicates high financial
responsibility of the company. Fundamentals are strong and healthy. Trade
relations are fair. Payments are correct and as per commitments. The company can
be considered good for any normal business dealings. It can be regarded as a
promising business partner in a medium to long-run. |
LOCATIONS
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Registered Office : |
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Tel. No.: |
91-20-26131021 / 23 / 24 / 25 |
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Fax No.: |
91-20-26133704 |
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E-Mail : |
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Website : |
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Factory 1 : |
Off NH 6, Bambhori,
Taluka Erandol, Dist. Jalgaon – 425 001, |
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Factory 2 : |
Nanekarwadl
(Chakan) Dist. Pune 410 501 ( |
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Factory 3 : |
Plot No. 9,
Sector 3, |
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Tel. No.: |
91-124-2123569 /
2290528 / 3090358 |
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Fax No.: |
91-124-2123540 /
2290638 |
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E-Mail : |
DIRECTORS
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Name : |
Mr. Peter Delhey |
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Designation : |
Chairman |
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Name : |
Mr. Albert Hieronimus |
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Designation : |
Director |
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Name : |
Mr. Ferdinand Allerkamp |
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Designation : |
Director |
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Name : |
Mr. Friedrich Wagner |
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Designation : |
Director |
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Name : |
Mr. Johannes Schaefer |
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Designation : |
Director |
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Name : |
Mr. Sanjay S. Vaidya |
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Designation : |
Director |
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Name : |
Mr. Wilfried Aulbur |
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Designation : |
Director |
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Name : |
Mr. Anant J Talaulicar |
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Designation : |
Director |
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Name : |
Mr. Satish Sekhri |
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Designation : |
Managing Director |
KEY EXECUTIVES
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Name : |
Mr. Mandar Ratnaparkhi |
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Designation : |
Company Secretary |
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Audit Committee : |
Mr. Sanjay S.
Vaidya, Chairman |
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Mr. Ferdinand
Allerkamp |
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Mr. Wilfried
Aulbur |
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Mr. Anant J
Talaulicar |
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Shareholders'
Grievance Committee : |
Mr. Wilfried
Aulbur, Chairman |
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Mr. Satish
Sekhri |
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Mr. Johannes
Schaefer |
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Mr. Ferdinand
Allerkamp |
SHAREHOLDING PATTERN
AS ON 31.03.2006
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
8317047 |
79.999 |
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Mutual Funds |
273535 |
2.631 |
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Financial
Institutions |
50 |
0.000 |
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FIIs (Foreign
Mutual Funds) |
149002 |
1.433 |
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Bodies Corporate |
402609 |
3.873 |
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NRIs/OCBs |
14914 |
0.143 |
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Indian Public |
1239343 |
11.921 |
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Total |
10396500 |
100.000 |
BUSINESS DETAILS
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Line of Business : |
The company is
engaged in manufacturing and selling of hydraulic and air brake
components. It also acts as traders of
brake fluid, hydraulic brake components including rear brake assembly, tandem
master cylinder, front caliper assembly and rotor discs. |
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Products : |
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PRODUCTION STATUS
AS ON 31.03.2006
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Hydraulic, Air and Air over
Hydraulic brake component |
PCS ('000) |
22031 |
-- |
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Hydraulic Brake Components |
PCS ('000) |
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a) Rear Brake
Assembly |
PCS ('000) |
-- |
1382 |
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b) Tandem Master
Cylinder |
PCS ('000) |
-- |
1082 |
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c) Front Caliper
Assembly |
PCS ('000) |
-- |
1292 |
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d) Rotors
(Discs) |
PCS ('000) |
-- |
475 |
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e) Two Wheeler Brakes |
PCS ('000) |
-- |
320 |
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Brake Fluid |
Ltrs ('000) |
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1064 |
GENERAL INFORMATION
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No. of Employees : |
2200 |
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Bankers : |
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Facilities : |
-- |
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Banking
Relations : |
Good |
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Auditors : |
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Name : |
statutory
auditors
Bansi S. Mehta & Company Chartered Accountants internal
auditors
Deloitte Haskins & Sells Chartered Accountants |
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Associates/Subsidiaries : |
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Joint Ventures - |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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15,000,000 |
Equity Shares |
Rs. 10/- each |
Rs. 150.000 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
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10,396,500 |
Equity Shares |
Rs. 10/- each |
Rs. 103.965 millions |
FINANCIAL DATA
[all figures are
in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2006 |
31.03.2006 |
31.03.2005 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
104.000 |
103.965 |
103.965 |
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2] Reserves & Surplus |
1456.800 |
1260.906 |
832.570 |
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NETWORTH |
1560.800 |
1364.871 |
936.535 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
26.272 |
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2] Unsecured Loans |
438.000 |
452.682 |
436.765 |
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TOTAL BORROWING |
438.000 |
452.682 |
463.037 |
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DEFERRED TAX LIABILITIES |
0.000 |
90.900 |
110.900 |
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TOTAL |
1998.800 |
1908.453 |
1510.472 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1016.900 |
989.219 |
1083.218 |
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Capital work-in-progress |
75.200 |
53.076 |
47.346 |
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INVESTMENT |
468.100 |
537.869 |
87.214 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
409.700 |
309.503 |
261.998 |
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Sundry Debtors |
896.200 |
981.828 |
646.119 |
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Cash & Bank Balances |
107.000 |
83.560 |
131.859 |
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Other Current Assets |
0.000 |
0.677 |
0.000 |
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Loans & Advances |
224.300 |
153.068 |
105.953 |
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Total Current Assets |
1637.200 |
1528.636 |
1145.929 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
989.700 |
926.700 |
651.302 |
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Provisions |
208.900 |
273.647 |
201.933 |
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Total Current Liabilities |
1198.600 |
1200.347 |
853.235 |
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Net Current Assets |
438.600 |
328.289 |
292.694 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
1998.800 |
1908.453 |
1510.472 |
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2006 |
31.03.2006 |
31.03.2005 |
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Sales Turnover |
4149.000 |
4328.743 |
3574.083 |
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Other Income |
221.900 |
198.966 |
127.289 |
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Total Income |
4370.900 |
4527.709 |
3701.372 |
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Profit/(Loss) Before Tax |
402.800 |
813.309 |
490.129 |
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Provision for Taxation |
139.100 |
242.719 |
165.837 |
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Profit/(Loss) After Tax |
263.700 |
570.590 |
324.292 |
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Earnings in Foreign Currency : |
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Export Earnings |
NA |
515.202 |
346.508 |
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Other Earnings |
NA |
13.395 |
11.867 |
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Total Earnings |
NA |
528.597 |
358.375 |
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Imports : |
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Raw Materials |
NA |
324.694 |
193.447 |
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Stores & Spares |
NA |
18.557 |
47.659 |
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Capital Goods |
NA |
13.016 |
80.796 |
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Total Imports |
NA |
356.267 |
321.902 |
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Expenditures : |
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Material
Consumed |
2179.400 |
2545.095 |
2077.996 |
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(Increase)/Decrease
in Stocks |
0.000 |
[4.460] |
6.998 |
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Selling and Administration Expenses |
364.500 |
0.000 |
0.000 |
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Power and Fuel Cost |
87.700 |
0.000 |
0.000 |
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Excise Duty |
609.100 |
0.000 |
0.000 |
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Manufacturing
and Other Expenses |
257.200 |
779.832 |
687.578 |
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Employees' Emoluments
|
267.900 |
335.827 |
255.486 |
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Interest and
Finance Charges |
5.900 |
6.148 |
5.800 |
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Depreciation |
187.600 |
266.448 |
177.385 |
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Miscellaneous
Expenses |
8.900 |
0.000 |
0.000 |
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Total Expenditure |
3968.200 |
3928.890 |
3211.243 |
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QUARTERLY RESULTS
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PARTICULARS |
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31.03.2007 |
|
Type |
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1st
Qtr |
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Sales
Turnover |
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|
1329.900 |
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Other
Income |
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|
38.800 |
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Total
Income |
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|
1368.700 |
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Total
Expenditure |
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|
1145.900 |
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Operating
Profit |
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|
222.800 |
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Interest |
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|
01.900 |
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Gross
Profit |
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|
220.900 |
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Depreciation |
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|
54.300 |
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Tax |
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|
60.300 |
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Reported
PAT |
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|
111.500 |
Notes
200703 Quarter 1 –
1. The above results were taken on record by the Board of
Directors of the company at its meeting held on 30th April 2007. 2. The Company
has only one segment of activity namely Automative Brake Systems & Components.
3. There were no complaints from investors outstanding at the beginning of the
quarter and two complaints received during the quarter ended 31st March 2007
were redressed during the quarter. No complaints are therefore pending as on
31st March 2007. 4. i) During the Quarter ended March 06, the two wheeler brake
manufacturing activity of the company was sold to the Joint venture company.
The Consequent profit of Rs 214.5 Mio was reflected as an Exceptional Item. ii)
Further the useful life of certain assets was revised during the quarter ended
31st March 2006 and the depreciation charge for the quarter was higher by Rs
43.70 Mio due to the cumulative impact of earlier periods. In view of the
above, the figures are not comparable with the corresponding period of the
previous year.
KEY RATIOS
|
PARTICULARS |
31.12.2006 |
31.03.2006 |
31.03.2005 |
|
Debt Equity Ratio |
0.30 |
0.40 |
0.55 |
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Long Term Debt
Equity Ratio |
0.30 |
0.39 |
0.48 |
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Current Ratio |
1.25 |
1.14 |
1.07 |
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TURNOVER RATIOS |
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Fixed Assets |
2.86 |
2.80 |
2.58 |
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Inventory |
15.38 |
17.40 |
17.23 |
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Debtors |
5.89 |
6.11 |
6.73 |
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Interest Cover
Ratio |
69.27 |
97.47 |
85.48 |
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Operation Profit
Margin (%) |
14.37 |
17.51 |
16.39 |
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Profit Before Interest
and Tax Margin (%) |
9.85 |
12.15 |
12.07 |
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Cash Profit
Margin (%) |
10.88 |
13.88 |
12.22 |
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Adjusted Net
Profit Margin (%) |
6.36 |
8.53 |
7.90 |
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Return on Capital
Employed (%) |
28.56 |
37.57 |
37.73 |
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Return on Net
Worth (%) |
24.04 |
36.85 |
38.35 |
STOCK PRICES
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Face Value |
Rs.10.00/- |
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High |
Rs.503.25/- |
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Low |
Rs.501.25/- |
LOCAL AGENCY FURTHER INFORMATION
The company’s fixed
assets of important value include Land (Freehold and Leasehold), Building
(Freehold and
History
Actually incorporated as a private limited company in March
1982, Kalyani Brakes (KBX) was later converted into public limited company in
Nov.'82. In Jan.'83, it tied up with Allied Signal, a Fortune-500 company to
manufacture air and air-over-hydraulic brake systems in Bambhori,
Kalyani Brakes(KBX), a JV company between Kalyani Group of
The Company is having a subsidiary, Precision Seals Manufacturing Limited,
holding a 60% equity which is dealing in Rubber and Backelite items for
Autombiles.
It came out of the red during 1986-87. It offered rights in May '93 (premium :
Rs 30) to part-finance the expansion of manufacturing facilities from 60,000
tpa to 1,00,000 tpa.
The company established a new state-of-the art manufacturing facility at
Chakan, Pune. This new plant supplies brakes to foreign car manufacturers like
Ford, GM and Hyundai, and was set up at a cost of Rs 370 Millions. It is a
state-of-the-art plant, based on the cell-concept of manufacturing.
The company has received the ISO 9000, ISO 9001 and the QS 9000 - the stringent
quality standards set by three major US automakers. With this and a little help
from its collaborators, NABCO and Bosch, KBX can hope to tap the foreign
markets in the event of a slowdown at home.
The technical collaboration agreement with Japan Brake Industrial Co,
The company has taken initiative for purchase of brake plant and equipment from
two leading international brake manufacturers. The company is also in for
purchase of business from Eligi, Comibatore for truck air brakes etc.
The company has increased the installed capacity of Hydraulic, Air and Air Over
Hydraulic Brake Components by 3251438 Nos during 2004-05 and with this
expansion the total installed capacity of Hydraulic, Air and Air Over Hydraulic
Brake Components has increased to 14899438 Nos.
During 2004-05 the manufacturing facility at Jalgaon Plant was totally revamped
from process to product type set up. A brand new facility was commissioned at
the existing site and this facility (J2 Plant) is based on cellular
manufacturing and it's operations are being run by highly skilled personnel.
Further the Aluminium Foundry at Jalgaon which supplies critical gravity die
castings to the plants at Pune and Jalgaon was expanded and modernized. A new
line automatic line was purchased that incorporates robotic pouring of the
liquid metal to ensure quality and consistency of castigs. The company has also
commissioned its facilities with a new product lines of Randem Vacuum Boosters
and Twin Pot Calipers.
The name of the company was changed from Kalyani Brakes Limited to Bosch
Chassis Systems India Limited during January 2006.
During October 2005 the company has signed an agreement with Brembo SPA of
The Directors have pleasure in presenting their Twenty Fifth
Annual Report and Audited Accounts of the Company for the nine months period
ended on December 31, 2008. During this period, the Company achieved a total
income of Rs.3705 Million as compared to Rs.4527 Million in the previous year
of 12 months period. This represents a growth of over 14% over the
corresponding period in the previous year.
Subsidiary:
A statement pursuant to Section 212 of the Companies Act, 1956, relating to
Precision Seals Manufacturing Limited (PSML), a subsidiary of the Company, as
on December 31, 2006, is attached to the Accounts of the Company.
In June 2006, the Company acquired from Kalyani Group, Pune the balance 40%
equity stake in PSML Consequently, PSML is now a wholly owned subsidiary of the
Company.
Consolidated financial statements of the Company (along with it's Subsidiary
and Joint Venture Company) and the Auditors' Report thereon, as on December 31,
2006, are also attached to the Accounts of the Company.
Joint Venture:
Consolidated financial statements annexed to the Annual Report include results
upto December 31, 2006 of the Joint Venture Company, M/s. KBX Motorbike
Products Private Limited
Operations:
Conservation of Energy:
As a measure of energy saving and cost control, the Company took various
actions. For effecting savings in electrical energy, following specific
measures were taken.
At Jalgaon plant:
i. Converting Standard Room AC plant from water cooled to air cooled thereby
reducing electrical energy and water consumption of water pumps,
ii. Surveying and reinstalling fixed capacitor banks along with APFC panel
thereby reducing electrical energy,
iii. Converting off load tap changer power distribution transformers to on load
thereby reducing electrical energy,
iv. Installing natural drift turbo ventilators instead of electrically operated
exhaust fans thereby reducing electrical energy.
v. Providing switch on & off electrical supply for distribution transformer
during off load period.
Promoters
"Kalyani
Group", the Indian promoters of the Company, have sold their equity stake
in the Company to the foreign promoters in July 2005. Consequently, Robert
Bosch Corporation and Robert Bosch Investment Nederland B.V. together hold
about 80% equity stake in the Company.
The name of the
Company has been changed from Kalyani Brakes Limited to Bosch Chassis Systems
India Limited w.e.f. January 2006.
MANAGEMENT DISCUSSION AND ANALYSIS:
Economic Trends:
During the year, the Indian economy showed a healthy growth of nearly 9%. For
the second year in a row, the Manufacturing and Service segments, both growing
at rave 1.0%, were the key drivers. The sharp increase in the investment rate
reinforces the future outlook. However, inflation, rising interest rates and
escalating prices of industrial raw materials are matters of major concern.
Government's focus on containing inflation and various policy initiatives to
take agriculture to a higher trajectory coupled with measures for removal of
infrastructure constraints should help to sustain the long term growth
momentum.
Indian Automobile Industry:
In line with the overall economic growth, the automobile industry also
performed well registering a growth of 16% in April-December 2006 over the
corresponding period of the last year.
During the same period in 2006, growth in passenger vehicles (cars and MUVs) at
17.5% was more than double the growth recorded during last year. A slew of new
launches, attractive discounts by leading car makers and customer friendly
finance schemes helped the market grow at this rate. The growth registered in
the motorcycle segment in the same period was 18.9%. Three wheeler segment
performed very well on the export front and crossed the 100000 mark in this 9
month period. As a result, the total sales grew at 31.9% during the period with
both the passenger and the goods carrier variants showing high momentum.
Operations:
The Company's constant endeavour to improve the manufacturing processes has
helped to respond to the growing demand of the customers and to optimize the
resources. During the period ended December 2006, significant improvements were
carried out at all three plants.
The Company is setting up its fourth plant at Sitargaanj (Uttaranchal) to serve
the OEM customers who have set up manufacturing facilities in this state. The
plant would be ready by May-07 and series production would commence immediately
thereafter. The plant wood cater to both OEMs customers and the After
Market.
Considerable growth has bean recorded in the Brake Hose business from the
Manesar Plant of the Company.
Additional line has been setup in the Aluminum Foundry at Jalgaon for
development of various types of high quality castings required for Two Wheeler
Disc Brake products for the export market. Operations of the automated Gravity
Die Casting tine, which waif installed last year, have reached the optimum capacity
utilization levels.
In order to meet the environmental standards, the Chakan plant has outsourced
its plating activities during the year.
The Company was successful in acquiring orders for supplying brake components
and systems for new vehicle models which are expected to do very well in the
Indian market.
Outlook:
The Indian economy is optimistic in maintaining a growth rate of above 8% per
annum. Business confidence, polled by various surveys, also appears to have
picked up in 2006, by increasing trend in sales, margins, order book, mergers
activities and rising stock prices. In line with the overall economic
conditions, buoyant domestic and export demand conditions thrill continue to
support the growth momentum in the Indian Automobile Industry. However, rising
material and other input costs, uncertain global macro economic conditions,
delays in implementation of important infrastructure projects in the country
and the slow pace of policy reform continue to be major causes of concern.
The company has always responded to challenger through a proactive approach
which would continue in the future also.
However, due to temporary dip in the export market and the transfer of the two
wheeler brake business to the joint-venture, growth in the immediate future
world be moderate.
Opportunities:
The Company, with the active support from its collaborators, is in a position
to secure new business contracts from existing and the new international OEMs
entering the Indian market. Leading Indian vehicle manufacturers are planning
to launch their low price cargo vehicles in the market in the near future. The
Company's strong emphasis in this category will yield good results in the near
future.
With rising level of export of cars from
The Company has recently undertaken manufacture of certain brake products for
export to
BUSINESS
In FY2000, the company started commercial supplies
to Telco and Maruti for their new models.
Since, its inception, the company had to face cash and liquidity
problems. It came out of the red during 1986-87. It offered rights in May, 1993
(Premium Rs. 30/-) to part finance the expansion of manufacturing facilities
from 60,000 tpa to 1,00,000 tpa.
The company established a new state-of-the art manufacturing facility at
Chakan, Pune. This new plant supplies brakes to foreign car manufacturers like
Ford, GM and Hyundai and was set up at a cost of Rs. 370.000 millions. It is a
state-of-the-art plant, based on the cell-concept of manufacturing.
The company has received the ISO 9000, ISO 9001 and the QS 9000 – the
stringent quality standards set by three major US automakers. With this and a
little help from its collaborators, NABCO and Bosch, the company can hope to
tap the foreign markets in the event of a slowdown at home.
A technical collaboration agreement has been reached with Japan Brake
Industrial Company,
With the passenger car sales falling, the company took various steps in
the fiscal 2001 for a potential growth in the coming years like purchase of
brake plant and equipment from two leading international brake manufacturers,
purchase of business from Eligi,
Bosch
In India, the Bosch Group has about 15,044 employees, and in business
year 2005 achieved total consolidated sales of Rs 40 billion (Euro 729 Mio).
Bosch
has grown phenomenally in
In
1) Motor Industries
Company Limited - MICO
2) Robert Bosch India Limited – RBIN
3) Bosch Rexroth India Limited – BRIN
4) Bosch Chassis System
As per website
Business Sectors
Automotive
technology
Bosch Group was the world's largest automotive supplier in terms of sales
in 2004, generating a total of 25.3 billion euros. Bosch plans to utilize the opportunities
in the rapidly growing Indian market for passenger cars. It is also stepping up
its diesel operations in
Consumer goods and
building technology
In
Industrial
technology
Bosch
Rexroth AG is an expert for all drive, control and motion technologies. The
Industrial Technology division Bosch Rexroth India provides a complete range of
world-class products, systems and services to customers in India, Bangladesh,
Nepal and Sri Lanka through its manufacturing facilities, service centres, and
service partners from all over South Asia.
Software services
The
software division of Bosch in
Another first from
Bosch for the Indian Automotive Industry
• First in
• Bosch Common Rail
to bring new driving pleasure and economy to the Indian car owner
“Diesel
vehicles are becoming increasingly popular in
The Indian growth
market: Good opportunities for Clean, Safe and Economical Technologies
Bosch’s
trust in the Indian market is reflected in its contribution to the Indian
industry. The consolidated sales figures of the Bosch group in
With
around 1.3 million cars and utility vehicles manufactured in 2005,
In
order to comply with stricter emission norms, new vehicles will need to be
equipped with electronically controlled fuel injection systems like Common Rail
Systems. Further the time available for the development of these vehicles will
be very short. “For this reason they are investing not only in the
manufacturing capabilities but also in improving the development and
application capabilities for Common Rail Systems,” Dr Bohr said. In the future
safety will continue to play an increasingly important role with improving road
infrastructure and consequently higher vehicular speeds. Technologies such as
Antilock Braking System (ABS), and Electronic Stability Program (ESP) will play
a significant role towards this. Bosch has played a crucial role in the
development of automotive technology in
Bosch flagship -
Motor Industries Company Limited,
Bosch
has had an active presence in
About BOSCH
The Bosch Group is a leading global manufacturer of
automotive and industrial technology, consumer goods, and building technology.
In fiscal 2005, some 251,000 associates generated sales of 41.5 billion euros.
Set up in
The special ownership structure of the Bosch Group
guarantees its financial independence and entrepreneurial freedom. It makes it
possible for the company to undertake significant up-front investments in the
safeguarding of its future, as well as to do justice to its social
responsibility in a manner reflective of the spirit and will of its founder. A
total of 92% of the shares of Robert Bosch GmbH are held by the charitable
foundation Robert Bosch Stiftung. The entrepreneurial ownership functions are
carried out by Robert Bosch Industrietreuhand KG.
Additional
information can be accessed at www.bosch.com
About Motor
Industries Company Limited
Motor Industries Company Limited is the flagship of
the Bosch Group in
The Bosch Group holds 60.55% stake in Motor Industries
Company Limited. Access to state-of-the-art technologies from Bosch and a
commitment to world-class quality have made it the country's largest
manufacturer of Diesel Fuel Injection Equipment and one among the largest in
the world. It is headquartered in
It has a strong after sales network spanning across
1000 towns and cities in India with over 4,000 authorised representations which
ensure widespread availability of both products and after-sales services. As
Bosch is focusing on
Founded in 1951, Mico is the largest Indo-German company, and the
largest manufacturer of diesel fuel injection equipment in the country.
Mico employs about 9,853 associates, and in business year 2005 generated net
sales of Rs 30,168 million with a good growth in both automotive as well as the
non-automotive businesses.
Mico’s business areas include common rail injectors and components,
diesel fuel injection equipment, industrial equipment, auto-electricals, gear
pumps for tractor applications, electric power tools, packaging machines,
security technology products and Blaupunkt car multimedia systems. The
nationwide network of MICO spans across 1000 towns with over 4,000 authorised
representations ensures widespread availability of both products and
after-sales services.
With
Bosch, Mico has developed excellent R&D and manufacturing capabilities,
which has helped build a strong customer base and establish market leadership
through the high quality of its technology and products.
Mico’s corporate office is
located at
Export Oriented
Units
Mico has advanced ISO certified manufacturing plants at
Research and Development
The Bosch group preserves its competitiveness with
innovations and cutting-edge technology solutions. Throughout the world, more
than 22,000 associates are involved in research and development for the Bosch
Group.
The company’s technological competence is also
manifested in the large number of patent applications it files. Bosch is the
second largest patent applicant in Germany, and the third largest at the
European Patent Office.
Technical Center India
Spread over an area of 10,000 sq m (approx.),
Technical Center India is located in Bangalore. The futuristic Technical Center
India is the first-of-its-kind in the country, dedicated to providing
world-class technological solutions for the auto industry. It has over 250
qualified and experienced engineers and technicians.
The Technical Center India is the first Global
Development Centre in the Bosch group, outside Europe. It works in tandem with
the automotive industry to develop products to match specific needs. With the infusion
of new international automotive technology in the last decade, it has swiftly
responded to match the needs of new generation vehicles.
Technical Center India offers solutions to vehicle
and engine manufacturers in the application of Electronic Diesel Control and
Petrol Injection Systems. It has the global responsibility of developing
certain products like single cylinder pumps, multi-cylinder pumps and
mechanical distributor pumps for the entire Bosch group. As the global
development centre, it is also involved in:
• Design and
development of new products from
concept to
manufacturing
• Manufacture and
testing of proto samples
• Reliability
testing
• Product quality
improvements and rationalisation
• Technical
co-ordination with other
manufacturing locations, in respect of
quality
and warranty
Facilities in R&D -
• Engine Test Cells
for emission, performance and
endurance
• High Precision
Calibration Test Benches
• Injector Testing
• Reliability and
Metallurgical Testing
• Computer Aided Design
Developments in the Application Centre
As a step towards meeting customer needs with the change
in the emission scenario, a full-fledged application test facility, for
electronic diesel control, petrol injection, spark plug and auto electrical
products, is housed in the new Application Centre.
Set up primarily to cater to the requirements of the
Indian auto manufacturers, this new setup is a perfect testbed for
manufacturers looking to upgrade their products with great attention to detail.
Facilities include –
• Engine Testing
dynamometer
• Chassis Dynamometer
(vehicle testing)
• High-precision
calibration test benches
• Spark plug testing
• Starter motor testing
• Alternator testing
• Vibration testing
• Glow plug testing
• Climatic testing
• Instrumentation lab
Environment Initiatives
Like
at Bosch, regard for environmental protection is one of Mico’s basic corporate
principles. Product quality, economic efficiency and environmental protection
are equal objectives. MICO follows the 3S principle of Bosch — sicher, sauber,
sparsam— of making automobiles safe, clean and economical.
Mico’s
focus on environmental awareness and continuous improvement are based on
stringent Bosch global guidelines.
Technologies
like Reverse Osmosis and Ion Exchange processes are employed for treatment and
reuse of process waste water across all plants. About 8 lakh litres of treated
effluent is being reused for gardening and other secondary purposes. More than
10,000 trees help maintain ambient air quality, holding soil and ground water
and acting as carbon sinks in the premises.
As
part of its social responsibility, MICO is actively involved with State and
Central Pollution Control Boards, non-governmental committees such as CII,
BCIC. The CII National Awards “Excellent Water Efficient Unit”, “Excellent
Energy Efficient Unit” and Leadership and Excellence award in SHE (Safety,
Health & Environment) – 2004 are some of the awards that MICO has won.
Corporate
Communication Campaign
‘Innovations’
campaign
Since
the last 120 years, innovations have been an unbroken tradition at Bosch.
Inventions to serve life continue to be made. The number of patents that Bosch
registers simply prove this.
Bosch
‘innovations’ are spread in both automotive and non-automotive segments
worldwide. Bosch’s R&D prowess is also being actively pursued in
Bosch and
Bosch,
has its headquarters at
In
this context, they have released an advertisement that proclaims “Bosch and
Launch of the Bosch
Brand in
Bosch’s
participation at the 8th Auto Expo 2006 is a landmark event, since it marks the
launching of the Bosch brand in
The
latest Corporate campaign projects one of the most significant dimension of the
Bosch world – the ability to innovate and make life better with innovative
technologies, through continuous inventions arrived at by meticulous research
and development. For decades, Bosch has silently played a dynamic role in the
world of automotive inventions.
The
campaign brings together the BOSCH, Blaupunkt, KBX, MICO and Rexroth brands
under the umbrella brand BOSCH.
Corporate
Advertising Campaign in
In
‘Safe - sicher’ Ad
The
‘Safe’ ad has been created to highlight Bosch’s pioneering efforts to promote
corporate responsibility in
It
highlights automotive technologies such as ABS, ESP, and anti-crash sensors
pioneered by Bosch to increase safety levels for the driver. It focuses on the
varied and hostile conditions on Indian roads (such as monsoon) that Indian
motorists face on a daily basis. The ad also encourages motorists to take
responsibility for safe driving by urging them to wear seatbelts.
‘Clean - Sauber’ Ad
The
‘Clean’ Ad was created to highlight Bosch’s pioneering efforts to promote
corporate responsibility in
‘Economical -
Sparsam’ Ad
For
The
‘Economical’ ad narrates how Bosch has applied innovations like common rail and
diesel fuel injection to make every rupee go the longest way.
Bosch’s
tradition of optimising consumption, emissions and safety with new products is
a recurring theme. Piezo injectors, particulate filters, and research into
alternative drive technologies are just three examples of how Bosch components
will shape the future of the eco-friendly car in the near future.
Other Environment
ads
‘Leaf’ Ad
There
is a burgeoning growth in the number of two-wheelers and four-wheelers in the
country. Pollution has risen to alarming levels. The greenness of the leaf
associates with ‘Sauber’ which means clean, emphasizing clean air. It further,
highlights that BOSCH is technology oriented with an eye for environmental and
social
concerns.
‘Butterfly’ Ad
Mico
Bosch is a company that cares for the environment and this philosophy is built
into the core of the business practices. This ad was posted at six main airports
in
‘Environment Day’
Ad
Mico
commemorated WED, 2005 at the
MICO BOSCH -
Awinning team once again
Subsequent
to winning the ‘Auto Component Manufacturer of the year 2005’ award previous
year, MICO BOSCH has once again proved its prowess in the automotive arena. The
award won this year brings forth onto the surface the fact that Bosch combines
crucial factors like safety and technology, with the drive to innovate and
maintain the same, synonymous with the Corporate and Product philosophy of
Bosch – the 3S principle – to make driving safe, clean and economical.
Mico
Bosch was the unanimous choice of the jury behind the NDTV Profit CAR INDIA
AWARDS 2006 for the Safety & Technology Award. This award recognizes the
best in the industry, and has been instituted by the newest automotive magazine
in the Indian scene - CAR
This
important award was presented to Mico Bosch this year for its pioneering work
on the new age direct injection diesel fueling systems, with notable emphasis
in the range of common rail diesels which have already appeared in series
production cars in India.
Also
taken into account was the persistent focus of Mico Bosch on unit injector
systems which are entering the scene in the high profile high aspiration
D-segment cars. This award looked into not just the advances in the technology
but also the benefits the new technology brought to automotive users as well as
the potential for the technology to be applied in
The
Safety & Technology Award was presented to Dr Albert Hieronimus - Managing
Director, Mico and
Mr M Lakshminarayan - Joint Managing Director, Mico by Mr Shrikant
Bosch assumes industrial leadership of Kalyani
Brakes Limited, to expand its brake activities in
Significant opportunities also seen for ABS
· Bosch increases its holdings in Kalyani Brakes Limited to
80 percent
· Basis for further expansion in a
rapidly-growing market
The
Bosch Group purchased from the Kalyani Group,
With
the assumption of the industrial
leadership, Bosch plans to rename the company to Bosch Chassis Systems India Limited In the future, Bosch also plans to extend its
worldwide manufacturing base for modern braking systems to
Kalyani Brakes is a
leading Indian brake manufacturer. The company manufactures conventional
braking systems and components for passenger cars, tractors, 3 wheelers and
two-wheelers in its plants in Jalgaon, Chakan, and Manesar. Kalyani Brakes employs roughly 1,800 associates and in fiscal year
2004/2005 generated sales of 63 million euros.
Apart
from its holdings in Kalyani Brakes, Bosch is represented in
Kalyani Brakes to
form joint venture with Italian Brembo
BOSCH's
Indian subsidiary, Kalyani Brakes, and the Italy-based Brembo have signed a 50:50 joint venture agreement for manufacture and sale of braking systems for two-wheelers.
A
press statement from Bosch said the total investment of the two partners will
be 13 million euros. The turnover, put at 20 million euros in the first year,
is expected to double in the next four years.
The new company, KBX
Motorbike Products Private Limited, will be based in Pune.
Kalyani Brakes will
integrate its existing two-wheeler brake production into the joint venture. Initially, the products will be sold domestically to feed
the rapidly growing two-wheeler market, whose size is estimated to be around
six million units. As per the agreement, signed on Monday, Brembo will contribute licences and
technology and will have the industrial leadership. The deal has to be approved
by the Antritrust Authorities and the Foreign Investment Promotion Board of
India. The Bosch Group recently doubled its stake in Kalyani Brakes
Limited to 80 per cent.
Kalyani Brakes
manufactures conventional brake systems and components with plants in Jalgaon,
Pune, and Manesar. The company generated sales of 63 million euros in 2004-05
and has about 1,800 associates.
Apart
from its holdings in Kalyani Brakes, Bosch's other subsidiaries are
Motor Industries Co Limited (MICO), Robert Bosch India Limited, and Bosch
Rexroth India Limited The Bosch Group employs some 14,000 people in
In
2004, the Indian Bosch subsidiaries achieved sales of 548 million euros. Brembo has been licensing some design
for motorcycle braking systems, without brand, to Kalyani Brakes
since 1999.
The Company
Kalyani Brakes Limited, is a joint venture company between Kalyani Group
and Robert Bosch,
The
Challenge
In
the last few years, since they have moved into the regime of price
competitiveness, rather than cost plus scenario, they had to look into various
options like material costs, internal conversion cost, labour cost and so on.
The Solution
ProBid™
- the Procurement Auction Solution coupled with Consultancy, Market Making
Services & Sourcing Intelligence.
The
Success
Using, ProBidTM - KBX was able to achieve significant
success by :
- Creating an
efficient lotting
- Strategy
Maximizing process efficiency through Market Making process
- Introduction
of new overseas suppliers led to savings in excess of 10%
Relationship
KBX has signed a contract for an estimated purchasing value of Rs 500 Million.
So far online procurement has resulted in a significant saving of more than Rs
2 Million. In the last four months of 2001, KBX has conducted 3 events for categories
such as Steel Sheets, Cutting Tools and Brake Fluids.
CMT REPORT (Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts,
1] INFORMATION ON
DESIGNATED PARTY
No records exist designating subject or any of its beneficial owners,
controlling shareholders or senior officers as terrorist or terrorist
organization or whom notice had been received that all financial transactions
involving their assets have been blocked or convicted, found guilty or against
whom a judgement or order had been entered in a proceedings for violating
money-laundering, anti-corruption or bribery or international economic or
anti-terrorism sanction laws or whose assets were seized, blocked, frozen or
ordered forfeited for violation of money laundering or international
anti-terrorism laws.
2] Court Declaration :
No records exist to suggest that subject is
or was the subject of any formal or informal allegations, prosecutions or other
official proceeding for making any prohibited payments or other improper
payments to government officials for engaging in prohibited transactions or
with designated parties.
3] Asset Declaration :
No records exist to suggest that the property or assets of the subject
are derived from criminal conduct or a prohibited transaction.
4] Record on Financial
Crime :
Charges or conviction
registered against subject: None
5] Records on Violation of
Anti-Corruption Laws :
Charges or
investigation registered against subject: None
6] Records on Int’l
Anti-Money Laundering Laws/Standards :
Charges or
investigation registered against subject: None
7] Criminal Records
No available
information exist that suggest that subject or any of its principals have been
formally charged or convicted by a competent governmental authority for any
financial crime or under any formal investigation by a competent government
authority for any violation of anti-corruption laws or international anti-money
laundering laws or standard.
8] Affiliation with
Government :
No record
exists to suggest that any director or indirect owners, controlling
shareholders, director, officer or employee of the company is a government
official or a family member or close business associate of a Government
official.
9] Compensation Package :
Our market
survey revealed that the amount of compensation sought by the subject is fair
and reasonable and comparable to compensation paid to others for similar
services.
10] Press Report :
No press reports / filings exists on
the subject.
CORPORATE GOVERNANCE
MIRA INFORM as part of its Due Diligence do provide comments on
Corporate Governance to identify management and governance. These factors often
have been predictive and in some cases have created vulnerabilities to credit
deterioration.
Our Governance Assessment focuses principally on the interactions
between a company’s management, its Board of Directors, Shareholders and other
financial stakeholders.
CONTRAVENTION
Subject is not known to have contravened any existing local laws,
regulations or policies that prohibit, restrict or otherwise affect the terms and
conditions that could be included in the agreement with the subject.
FOREIGN EXCHANGE RATES
|
Currency |
Unit
|
Indian Rupees |
|
US Dollar |
1 |
Rs.40.97 |
|
|
1 |
Rs.80.73 |
|
Euro |
1 |
Rs.54.56 |
SCORE & RATING EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
8 |
|
PAID-UP CAPITAL |
1~10 |
8 |
|
OPERATING SCALE |
1~10 |
8 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
8 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
8 |
|
--LEVERAGE |
1~10 |
8 |
|
--RESERVES |
1~10 |
8 |
|
--CREDIT LINES |
1~10 |
8 |
|
--MARGINS |
-5~5 |
- |
|
DEMERIT POINTS |
|
|
|
--BANK CHARGES |
YES/NO |
YES |
|
--LITIGATION |
YES/NO |
NO |
|
--OTHER ADVERSE INFORMATION |
YES/NO |
NO |
|
MERIT POINTS |
|
|
|
--SOLE DISTRIBUTORSHIP |
YES/NO |
NO |
|
--EXPORT ACTIVITIES |
YES/NO |
YES |
|
--AFFILIATION |
YES/NO |
YES |
|
--LISTED |
YES/NO |
YES |
|
--OTHER MERIT FACTORS |
YES/NO |
YES |
|
TOTAL |
|
72 |
This score serves as a reference to assess SC’s credit risk
and to set the amount of credit to be extended. It is calculated from a
composite of weighted scores obtained from each of the major sections of this
report. The assessed factors and their relative weights (as indicated through
%) are as follows:
Financial
condition (40%) Ownership
background (20%) Payment
record (10%)
Credit history
(10%) Market trend
(10%) Operational
size (10%)
RATING EXPLANATIONS
|
RATING |
STATUS |
PROPOSED CREDIT LINE |
|
|
>86 |
Aaa |
Possesses an extremely sound financial base with the strongest
capability for timely payment of interest and principal sums |
Unlimited |
|
71-85 |
Aa |
Possesses adequate working capital. No caution needed for credit transaction.
It has above average (strong) capability for payment of interest and
principal sums |
Large |
|
56-70 |
A |
Financial & operational base are regarded healthy. General unfavourable
factors will not cause fatal effect. Satisfactory capability for payment of
interest and principal sums |
Fairly Large |
|
41-55 |
Ba |
Overall operation is considered normal. Capable to meet normal
commitments. |
Satisfactory |
|
26-40 |
B |
Unfavourable & favourable factors carry similar weight in credit
consideration. Capability to overcome financial difficulties seems
comparatively below average/normal. |
Small |
|
11-25 |
Ca |
Adverse factors are apparent. Repayment of interest and principal sums
in default or expected to be in default upon maturity |
Limited with
full security |
|
<10 |
C |
Absolute credit risk exists. Caution needed to be exercised |
Credit not
recommended |
|
NR |
In view of the lack of information, we have no basis upon which to
recommend credit dealings |
No Rating |
|