MIRA
INFORM REPORT
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Report Date : |
08.02.2008 |
IDENTIFICATION
DETAILS
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Name : |
BOSCH LIMITED |
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Formerly Known As : |
MOTOR INDUSTRIES COMPANY LIMITED |
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Registered Office : |
Hosur Road, Post Box No 3000, Adugodi, Bangalore – 560030,
Karnataka |
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Country : |
India |
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Financials (as on) : |
31.12.2006 |
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Date of Incorporation : |
12.11.1951 |
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Com. Reg. No.: |
08-761 |
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CIN No.: [Company
Identification No.] |
L85110KA1951PLC000761 |
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TAN No.: [Tax
Deduction & Collection Account No.] |
BLRM01746D |
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Legal Form : |
Public limited liability company. The company’s shares are listed on the Stock Exchanges. Subject is a 56.99% subsidiary of Robert Bosch GmbH, Germany |
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Line of Business : |
Manufacturing and Marketing of pumps, Injectors, Nozzles, Starter motors, Spark plugs, Alternators, Blaupunkt car audio systems, Electric power tools, Special purpose machines, Packing machines, Automotive accessories and Bosch automotive products. Manufacturer of Automobile Equipment and Machinery |
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 81000000 |
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Status : |
Good |
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Payment Behaviour : |
Regular |
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Litigation : |
Clear |
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Comments : |
The company is a part of Robert Bosch GmbH, Germany, a well-established and reputed multi-national industrial house. Subject is a well-established and reputed company having fine track. Available information indicates high financial responsibility of the company. Financial position of the company is good. Fundamentals of the company are strong and healthy. The Company has been making good progress in its performance. Payments are always correct and as per commitments. The company can be considered good for normal business dealings at usual trade terms and conditions. |
LOCATIONS
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Registered Office : |
Post Box No 3000, Hosur Road, Adugodi, Bangalore – 560030, Karnataka, India |
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Tel. No.: |
91-80-22992111 / 22220088 / 22992195 |
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Fax No.: |
91-80-22272728 |
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E-Mail : |
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Website : |
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Head Office : |
RMB Complex, Adugodi, Bangalore – 560030, Karnataka, India |
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Tel. No.: |
91-80-22999279 / 22992705 |
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Fax No.: |
91-80-22992758 |
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Mumbai Office : |
Crystal Building, Dr. Annie Besant Road, Worli, Mumbai – 400 018, Maharashtra |
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Tel. No.: |
91-22-24930452 / 24951831 |
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Fax No.: |
91-22-24973924 / 24982052 |
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Factory : |
Located at v Naganathapura Plant, P.B.No.6887, Electronic City Post Office, Bangalore – 560 100, Karnataka, India v Nashik, Maharashtra v Jaipur, Rajasthan v Naganathapura, Karnataka |
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Sales Office Located at : |
Located at : · Ahmedabad · Bangalore · Chandigarh · Guwahati · Jaipur · Mumbai · Pune · Secunderabad · Chennai · Ernakulam · Indore · Kolkata · New Delhi · Raipur · Ghaziabad |
DIRECTORS
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Name : |
Mr. H. Zimmerer |
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Designation : |
Chairman |
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Name : |
Dr. J. J. Irani |
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Designation : |
Director |
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Name : |
Mr. B. Steinruecke |
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Designation : |
Director |
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Date of Appointment : |
15.06.2005 |
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Name : |
Mr. B. Muthuraman |
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Designation : |
Director |
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Name : |
Dr. B. Bohr |
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Designation : |
Director |
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Name : |
Mrs. Renu. S. Karnad |
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Designation : |
Director |
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Name : |
Mr. D. S. Parekh |
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Designation : |
Director |
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Name : |
Dr. A. Hieronimus |
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Designation : |
Managing Director upto
31.01.08 |
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Name : |
Mr. M. Lakshminarayan |
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Designation : |
Joint Managing Director |
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Name : |
Mr. V. K. Viswanathan |
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Designation : |
Joint Managing Director upto 31.01.08 |
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Name : |
Mr. V. K. Bedi |
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Designation : |
Sales Manager |
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Name : |
Mr. Satish Kumar |
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Designation : |
Purchasing Manager |
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Name : |
Dr. Ferdinand
Allerkamp |
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Designation : |
Joint Managing
Director |
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Name : |
Dr. Manfred
Dürnholz |
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Designation : |
Joint Managing Director |
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Date of Appointment : |
01.02.2008 |
KEY EXECUTIVES
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Name : |
Mr. B. S. Iyer |
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Designation : |
Company Secretary |
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Committees : |
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Audit Committee : |
Mrs. Renu. S. Karnad, (Chairperson) |
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Shareholders’/Investors’ Grievance Committee : |
Mr. B. Steinruecke (from 01.02.08) |
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Remuneration Committee : |
Mr. H. Zimmerer Dr. J. J. Irani Mr. B. Steinruecke (from 15.06.05) |
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Investment Committee : |
Mr. D. S. Parekh Dr. J. J. Irani Dr. A. Hieronimus Mr. V. K. Viswanathan (upto 28.02.06) |
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Property Committee :
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Mr. H. Zimmerer Mr. D. S. Parekh Mr. M. Lakshminarayan Mr. V. K. Viswanathan (upto 28.02.06) |
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Share Transfer Committee : |
Dr. J. J. Irani Mr. B. Steinruecke (from 15.06.05) Dr. A. Hieronimus Mr. V. K. Viswanathan (upto 28.02.06) |
MAJOR SHAREHOLDERS
/ SHAREHOLDING PATTERN
As on 31.12.2007
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Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Robert Bosch GmbH |
22349420 |
69.730 |
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Public Financial Institutions |
4357880 |
13.597 |
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Foreign Instructional Investors |
1409760 |
4.398 |
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Mutual Funds |
736676 |
2.298 |
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Nationalised Banks |
9212 |
0.029 |
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Body Corporates |
423106 |
1.320 |
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Foreign Nationals / NRIs / OCBs |
90046 |
0.281 |
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Public |
2675360 |
8.347 |
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Total |
32051460 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturing and Marketing of pumps, Injectors, Nozzles, Starter motors, Spark plugs, Alternators, Blaupunkt car audio systems, Electric power tools, Special purpose machines, Packing machines, Automotive accessories and Bosch automotive products. Manufacturer of Automobile Equipment and Machinery. |
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Products : |
Item Code No. (ITC Code) 84.08 & 84.09 Product Description Fuel Injection Equipment & Components
Item Code No. (ITC Code) 85.08 Product Description Portable Electric Power Tools
Item Code No. (ITC Code) 85.11 Product Description Auto Electrical Items |
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Exports : |
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Countries : |
Bangladesh, Brazil, Germany, Malaysia, Philippines, Saudi
Arabia, Singapore, Thailand, U.A.E. and U.S.A |
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Imports : |
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Countries : |
Germany, Japan and U.S.A |
PRODUCTION STATUS
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Particulars |
Unit |
Installed
Capacity |
Actual
Production |
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Fuel Injection Equipment |
Pcs. (‘000) |
2873 |
2636 |
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Spark Plugs |
Pcs. (‘000) |
20000 |
15701 |
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Auto Electricals |
Pcs. (‘000) |
1199 |
1013 |
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Portable Electric Power Tools |
Pcs. (‘000) |
210 |
145 |
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Nozzles and Nozzle Holders |
Pcs. (‘000) |
16035 |
16629 |
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Special Purpose Engines |
Nos. |
76 |
92 |
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Packaging Machines |
Nos. |
90 |
93 |
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Spares & Components |
Pcs. (‘000) |
18096 |
17756 |
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Tools, Gauges, Jigs & Fixtures |
Rs. Million |
228 |
232 |
GENERAL
INFORMATION
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No. of Employees : |
9856 |
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Bankers : |
· State Bank of India, Bangalore, Karnataka, India · Canara Bank, Bangalore, Karnataka, India · Citibank, N.A., Bangalore, Karnataka, India · Deutsche Bank AG, Bangalore, Karnataka, India |
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Facilities : |
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Banking
Relations : |
Satisfactory |
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Auditors : |
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Name : |
Price Waterhouse & Company Chartered Accountants |
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Address : |
5th Floor, Tower "D", The Millenia, 1
& 2 Murphy Road, Ulsoor, Bangalore 560 008 |
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Memberships : |
v Confederation of Indian Industry |
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Collaborators : |
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Parents Company : |
Robert Bosch GmbH, Germany |
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Associates/Subsidiaries : |
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CAPITAL STRUCTURE
Authorised Capital :
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No. of Shares |
Type |
Value |
Amount |
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38051460 |
Equity Shares |
Rs.10/- each |
Rs.380.515 millions |
Issued, Subscribed & Paid-up Capital :
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No. of Shares |
Type |
Value |
Amount |
|
38051460 |
Equity Shares |
Rs.10/- each |
Rs. 380.515
Millions |
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Less: Equity Shares bought back |
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Rs. 60.000
Millions |
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Total |
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Rs. 320.515 Millions |
FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
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SOURCES OF FUNDS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
320.515 |
320.515 |
320.500
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
20099.117 |
15207.756 |
12218.700
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
20419.632 |
15528.271 |
12539.200 |
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LOAN FUNDS |
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1] Secured Loans |
157.150 |
179.993 |
244.100
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2] Unsecured Loans |
1890.753 |
1508.220 |
1234.700
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TOTAL BORROWING |
2047.903 |
1688.213 |
1478.800 |
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DEFERRED TAX LIABILITIES |
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TOTAL |
22467.535 |
17216.484 |
14018.000
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
4488.084 |
3837.914 |
1946.900
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Capital work-in-progress |
927.355 |
884.473 |
643.500
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INVESTMENT |
7267.921 |
5208.190 |
5540.900
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DEFERREX TAX ASSETS |
1548.000 |
1563.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
5025.619
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3768.542 |
2841.000
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Sundry Debtors |
5285.179
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3776.914 |
2141.800
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Cash & Bank Balances |
6249.205
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5831.043 |
4958.200
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Other Current Assets |
20.029
|
10.952 |
0.000 |
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Loans & Advances |
3019.798
|
2731.535 |
3690.300
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Total
Current Assets |
19599.830
|
16118.986 |
13631.300 |
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Less : CURRENT
LIABILITIES & PROVISIONS |
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Current Liabilities |
7904.931
|
6759.219 |
4961.800 |
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Provisions |
3458.724
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3636.860 |
2782.800
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Total
Current Liabilities |
11363.655
|
10396.079 |
7744.600 |
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Net Current Assets |
8236.175
|
5722.907 |
5886.700
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
22467.535 |
17216.484 |
14018.000
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PROFIT & LOSS
ACCOUNT
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PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Sales Turnover |
37836.839 |
29774.827 |
27719.000
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Other Income |
2078.526 |
1747.449 |
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Total Income |
39915.365 |
31522.276 |
27719.000 |
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Profit/(Loss) Before Tax |
7983.064 |
5290.063 |
5635.400
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Provision for Taxation |
2503.148 |
1859.360 |
1887.700
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Profit/(Loss) After Tax |
5479.916 |
3430.703 |
3747.700
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Earnings in Foreign Currency : |
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Export Earnings |
6269.620 |
4231.253 |
NA |
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Other Earnings |
517.797 |
415.072 |
NA |
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Total Earnings |
6787.417 |
4646.325 |
NA |
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Imports : |
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Raw Materials |
3450.722 |
2069.664 |
NA |
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Stores & Spares |
4529.755 |
4001.647 |
NA |
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Capital Goods |
2026.115 |
2559.465 |
NA |
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Total Imports |
10006.592 |
8630.776 |
NA |
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Expenditures : |
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Materials |
19253.143 |
15261.169 |
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Operating Expenses |
11871.202 |
9396.123 |
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Depreciation & Amortization |
2464.837 |
1980.855 |
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Total Expenditure |
33589.182 |
26638.147 |
21259.300 |
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QUARTERLY RESULTS
|
PARTICULARS |
31.03.2007 |
30.06.2007 |
30.09.2007 |
|
Type |
1st
Quarter |
2nd
Quarter |
3rd
Quarter |
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Sales
Turnover |
10701.100 |
10933.600 |
10313.200 |
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Other
Income |
806.600 |
168.100 |
370.100 |
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Total
Income |
11507.700 |
11101.700 |
10683.300 |
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Total
Expenditure |
8658.900 |
8451.600 |
8368.400 |
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Operating
Profit |
2848.800 |
2650.100 |
2314.900 |
|
Interest |
(172.200) |
(221.500) |
(213.900) |
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Gross
Profit |
3021.000 |
2871.600 |
2528.800 |
|
Depreciation |
455.000 |
537.800 |
582.400 |
|
Tax |
794.000 |
743.300 |
672.900 |
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Reported
PAT |
1838.000 |
16442.500 |
1367.500 |
KEY RATIOS
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PARTICULARS |
31.12.2006 |
31.12.2005 |
31.12.2004 |
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Debt-Equity Ratio |
0.10 |
0.11 |
0.11 |
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Long Term Debt-Equity Ratio |
0.09 |
0.10 |
0.09 |
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Current Ratio |
1.76 |
1.69 |
1.73 |
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TURNOVER RATIOS |
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Fixed Assets |
2.13 |
1.98 |
1.76 |
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Inventory |
9.53 |
9.95 |
10.22 |
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Debtors |
9.25 |
11.12 |
12.46 |
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Interest Cover Ratio |
101.37 |
40.01 |
134.54 |
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Operating Profit Margin(%) |
21.39 |
22.51 |
25.81 |
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Profit Before Interest And Tax Margin(%) |
15.51 |
16.49 |
21.98 |
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Cash Profit Margin(%) |
16.49 |
16.45 |
18.33 |
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Adjusted Net Profit Margin(%) |
10.61 |
10.43 |
14.51 |
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Return On Capital Employed(%) |
32.75 |
34.74 |
47.03 |
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Return On Net Worth(%) |
24.73 |
24.45 |
34.55 |
LOCAL AGENCY
FURTHER INFORMATION
History
Motor Industries Company Limited (MICO), incorporated in
1951 as a subsidiary of Robert Bosch AG, Germany is India's largest
auto-ancillary company. This ISO 9001 certified company which was initially
incorporated to manufacture spark plugs for petrol engines and fuel injection
equipment for diesel engines the company produces wide ranges of auto ancillary
products which includes delivery valve nozzles, nozzle holders, filters, filter
inserts, glow plugs, glow indicators, glow resistors, starter motors, etc. It
is one of the world largest manufacturer of diesel fuel injection equipment.
It is also dealing in industrial equipment, auto-electrical, gear pumps for
tractor applications, electric power tools, packaging machines, security
technology products and Blaupunkt car multimedia systems. Robert Bosch,
Germany, holds a majority 56.99% stake in the company. The company is having 4
plants in the country, including two in Bangalore, one in Jaipur and Nashik.
All four plants are TS 16949 and ISO 14001 certified. MICO Trading Private
Limited is a subisidiary of MICO.
In 1985, MICO introduced the bi-metal electrode spark plug for petrol engines.
It also took steps to develop a manufacturing programme to produce 59,500
multi-cylinder fuel injection pumps. The company diversified into starter
motors and alternators. It set up the Bosch Global Development Centre to design
and develop small single-cylinder pumps for the entire Bosch group. MICO has
launched products like fog lamps, halogen lamps, stop lamps, tail lamps and
horns. The company has designed and developed fuel injection systems with
emphasis on reduction in both emission and fuel consumption.
The company has expanded its product mix in India with an investment of about
Rs 5000 Millions. The company had set up a manufacturing base for fuel
injection equipment with an investment of over Rs 2000 Millions. The Government
of Karnataka has extended a package of incentive for the proposed
expansion/diversification project.
It entered into a MOU with the Rajasthan Govt. to set up facilities near Jaipur
to manufacture auto ancillaries/components including fuel injection equipment.
The Jaipur plant was inaugrated and the civil work for the Application
Development Center is nearing completion. For the ninth year in succession the
MICO Vocational Center at Bangalore was adjudged the best establishment in the
All India Skills Competition. It intorduced three contemporary models of Car
Audio Systems belonging to Blaupunkt 99 range.
MICO made a buyback of shares in February 2002 of 200,000 equity shares of
Rs.2500 per share. It had concluded the first tranche of share buyback in May
2000 at Rs 4,200 per share. In Nov.'2000, it obtained approval to buy back
another two lakh shares, representing 5.55% of its capital at Rs 3,800 per
share. The company has drawn up a total outlay of Rs 760 Millions for the
buyback, to be financed out of the free reserves.
With a view to intensifying customer orientation, a new initiative called BeQIK
has been introduced as in Bosch. BeQIK is the Bosch global guiding principle
providing the overall vision for change within Bosch worldwide.
During 2001-02 the Nashik Plant successfully commissioned the shifting of
production facilities from Robert Bosch in Brazil,Turkey & France for the
manufacture of Nozzles and Nozzle Holder Assemblies. To cater to the Indian
market, 'Terra-25' a vertical form,fill and seal machine was introduced by
Packaging Machinery division. The Mobile Communication Division has launched
'Velocity' range of car audio accessories such as speakers, woofers & MP3
players.
During July 2004 the company sub-divided its equity share face value from
Rs.100/- per share to Rs.10/- per share. In August 2004 Bosch has announced
plans of its group companies to invest about Rs.10000 million in India over the
next 4 years. As part of this investment will be directed towards the
introduction of the Common Rail Diesel Injection systems. The first Common Rail
System is expected to roll out in early 2006.
The company acquired from Robert Bosch India Limited, the business activities
relating to Petrol Injection Systems with effect from 1st January 2005.
In June 2005, the BOSCH Group and MANN+HUMMEL GmbH signed an agreement to
establish a joint venture in India. In January, 2006, Mico invested Rs.25
Million being 25% in the equity capital of MHB Filter India Private Limited,
:50:50 joint venture by the two promoters for the manufacture of filter
elements/spin-on-filters and complete fuel filter systems for the filtration of
air/gases and liquids in Automotive Applications and Industrial
Applications.
During 2005, the companies production capacity of Fuel Injection equipment,
Auto Electricals, Injectors/Nozzles/Nozzle Holders expanded from 2685000 Pcs to
2869000 Pcs, from 931000 Pcs to 1044000 Pcs, from 8062000 Pcs to 8213000 Pcs.
The capacity of Special Purpose Machine and Packaging Machine expanded from 66
Nos to 71 Nos and from 55 Nos to 68 Nos respectively.
Financial Results:
Net sales for the year 2006 grew by 27%. The Profit Before Tax (PBT) for the
year as percentage of net sales was at 21.1% in 2006 as compared to 17.8% in
2005. The Profit After Tax as percentage of net sales was 14.5% in 2006 as
against 11.5% in 2005.
Although it was anticipated that the PBT for the year would be adversely
affected due to higher depreciation and start up costs of new products, the PBT
registered an impressive increase essentially due to the sale of property at
Bangalore (-Rs.85 mio.) in January 2006 and at Chennai (-Rs.1,380 mio.) in
April 2006. A favourable product mix development, increased off-take of
tractors and generator sets for industrial and other applications gave a fresh
impetus to the Inline pumps (PE) production volumes resulting in deferment of
the plan for ramp down of PE production with a positive effect on their
profitability.
In addition to the high domestic demand from the OE customers, exports also
increased by an impressive 48% over 2005 due to export of Common Rail Injector
components to Bosch Korea and increased exports of Single Cylinder Pumps (PF45
and PF33).
Automotive:
The Indian Automotive market had another good year in 2006 driven by the growth
in economy and by the positive effects of government policies and the
infrastructure projects. Sales of Commercial Vehicles were positively
influenced due to the improvement of road infrastructure and also the ruling of
the Supreme Court to ban overloading of Commercial Vehicles. These positive
developments lead to the growth in volume of Light Commercial Vehicles (LCV)
and also generated an increased demand for higher tonnage multi-axle
vehicles.
The sale of Passenger Vehicles increased due to the excise duty cuts announced
for compact cars and the increase in disposable income of households along with
the easy availability of loans. An important and positive development in the
car market has been the growing popularity of Diesel Vehicles due to the good
acceptance of Common Rail Systems. The Diesel engines with Common Rail Systems
have proved to be more fuel efficient, better performing and quieter.
The tractor segment has also shown an impressive growth due
to the increased focus of the government in providing subsidies. The two and
three wheeler markets too have done well in 2006. Driven by the positive
economic scenario and the acquisition of new projects, their Automotive OE
businesses progressed well with an overall growth of 27% over last year.
After several years of modest performance, the Aftermarket recorded a double
digit growth in 2006. In addition to a good performance by manufactured goods,
sales by the trade goods segment also registered a positive increase.
The actions to combat spurious and counterfeit products were continued in the
year 2006 as well. In addition, along with Bosch, the Company coordinated raids
in China on fake Spark Plugs manufacturers.
A manufacturing unit catering to the Aftermarket requirements was set up in
Uttaranchal to avail the benefits of tax incentives.
The Blaupunkt business registered a double digit growth through its aggressive
marketing strategies such as brand shops, network development and several new
product launches.
Non Automotive Power Tools The Power Tools division achieved a growth of more than
27% over last year, doubling the turnover within three years. The division has
concluded a Memorandum of Understanding with six leading Nationalised Banks to
avail easy finance for purchase of Power Tools by craftsmen. 'Bosch Vaahan' was
launched to demonstrate the versatility of the tools to the artisans, enable
artisans to try-n-buy and also to increase the market penetration through
display-cum-demonstration.
With a comprehensive range of tools for construction, wood working, metal
working, Lawn & Garden, Do-it-Yourself tools and partnering with Fischer
Fixing Systems, the division continues to provide a wide range of solutions to
meet customer needs.
Operations:
While the overall turnover increased by 27% over the year 2005, the operating
income grew by 12.9% and the non-operating income by 109.3% mainly due to the
realisation from sale of property at Bangalore and Chennai. Material costs as
percentage to sales declined to 50.9% as compared to 51.3% in 2005. The staff
costs witnessed a nominal increase of 5.4% over last year. Operating expenses
(excluding staff costs) increased from 20.2% in 2005 to 46.1% in 2006 due to
various factors including one time tooling costs for setting up manufacturing
facilities for Common Rail Systems (CRS), a lump sum technology payment for
CRS, SAP license fees, BOSCH brand promotion expenses, etc. Overall, in terms
of Profit Before Interest, Depreciation and Taxes, the result for the year
shows an increase of 25.4% over the previous year which is in line with the
sales growth. The net interest income increased marginally by 7.5% and
depreciation for the year increased by 24.4% as compared to the previous year.
The Company changed its depreciation policy whereby the useful life of the
plant and machinery is reduced from 8 to 6 years considering the changes in
product life cycles. The depreciation on new additions has been charged on a
quarterly pro-rata basis as compared to the earlier practice of charging full
depreciation in the quarter of addition, however with no significant impact on
the results.
Joint Venture Business:
MHB Filter India Private Limited, a joint venture of the Company with Mann
& Hummel Filter Private Limited (a wholly owned subsidiary of MANN+HUMMEL
GmbH, Germany) was incorporated on 16''January 2006. The manufacturing facility
of MHB Filter India Private Limited was inaugurated on 18' August 2006. The
manufacture/supply of filters both for the Automotive and Industrial
Applications that commenced in 2006 is expected to reach higher capacities in
2007.
Plants:
Bangalore:
The Common Rail Pump manufacturing facility was inaugurated in February 2006 by
Dr. Hermann Scholl, Chairman, Supervisory Council, Robert Bosch GmbH. In June
2006, Dr. B. Bohr, Member of the Board of Management, Robert Bosch GmbH handed
over the first Common Rail Pump to Mr. Jagdish Khattar, Managing Director,
Maruti Udyog Limited and to Dr. Pawan Goenka, President, Automotive Sector,
Mahindra and Mahindra Limited The Bangalore plant won the prestigious 'Golden
Peacock Eco-Innovation Award' from The Institute of Directors.
Nashik:
The Nashik plant also had a successful year with ramp up of capacities for
Common Rail Injector components manufacturing. The plant crossed another
milestone of manufacturing six million Injectors. It also achieved a record
export turnover in 2006 as compared to previous years.
Naganathapura:
The Auto Electricals business registered an increase in turnover along with
further improvement in the quality of manufacture.
In the spark plug area, the plant continued its focus on cost reduction
measures due to the high price pressures in both OE and the Inland
Aftermarket.
Jaipur:
The Jaipur plant ramped up the production capacities to meet the increased
domestic demands. The plant is in the process of becoming a lead plant within
the Bosch group worldwide for the manufacture of distributor pumps.
Management Discussion and Analysis Report:
Industry Structure And Development:
The Indian Economy continues to maintain its strong growth. After posting an
average GDP growth rate of 8.3% in the previous three years, the economy is
expected to increase by 9% in 2006-07. The industrial and service sectors
continue to drive this high growth with expected growth rates in excess of 10%
in 2006-07. The agricultural sector, on the other hand, is expected to expand
by only around 2.5%.
The Indian Automotive market enjoyed another good year in 2006 driven by this
economic growth, the positive effect of government policies and infrastructure
projects. The sales of Commercial vehicles grew by 28%. This growth was driven
by the ruling of the Supreme Court to ban overloading of Commercial vehicles
and by an improved highway infrastructure which generated demand for higher
tonnage multi-axle vehicles and for LCV.
The sales of Passenger vehicles also increased by 16% due to the excise duty
cuts announced for compact cars and increasing disposable income along with
easy availability of loans. An important and positive development in the car market
has been the growing popularity of Diesel vehicles due to the good acceptance
of Common Rail Systems. Diesel engines with Common Rail Systems have proved to
be more fuel efficient, better performing and quieter.
The Tractor segment has also shown an impressive growth of 27% due to the
increased focus of the Government in providing subsidies and due to soft loans
being given by Banks. The 3 and 2 wheeler markets have also done well in 2006
by growing at 29% and 15% respectively.
Operations:
The year 2006 was another good year for the Company with the following
highlights:
* The Company sustained its growth momentum in 2006 again with an overall
growth of 27% over the previous year. This was achieved not only due to the
general upturn in the market, but also due to the acquisition of some key
projects both in the Automotive and the Non-Automotive sector. It was further
supported by their continued focus on new product development and on improving
their reach so that they are closer to their customers. The business sector
wise sales performance of the Company has been highlighted in the Director's
report.
* The Company continued its investment programme of setting up new
manufacturing lines, increasing capacities in line with the market demand and
developing competencies for new products and technologies. The total investment
in the last three years exceeds over 8,800 Mio. INR. During 2006, the Company
increased the production capacity of Common Rail Injector components, Nozzles
& Injectors in its Nasik plant to take care of the increased domestic and
export demand. The production of Common Rail Pumps started in the Bangalore
Plant in the second half of 2006.
* The year 2006 also saw the successful roll out of an integrated IT system
(SAP R/3) across all locations. This is expected to further integrate and
enhance the business processes.
* The Deployment of Business Excellence based on the European EFQM model has
been a focus area for the Company in 2006. Several initiatives have been started
to ensure that these concepts percolate down in the organisation and become a
part of the work culture.
Segment-Wise Analysis:
The proportion of the Non-Automotive business of the Company has increased from
7.7% in 2005 to 8.1% in 2006, with the Power Tools business growing by 27%,
Security Systems by 53% and Packaging Machinery by over 70%.
In the Secondary segment, the share of exports has increased from 14.2% in 2005
to 16.6% mainly due to higher exports of Common Rail Injector components.
Outlook:
The Indian Automotive Industry appears to be set for sustained growth also in
the coming years. The Government's 10 year Automotive Mission Plan launched in
January 2007 envisages converting India into a manufacturing and export hub for
small cars, multi-utility vehicles, two wheelers, tractors and components. The
tax holidays and the one stop clearance facility for all foreign direct
investments contemplated under this plan are expected to attract new
investments. This move by the Government together with the gradual
establishment of India as a competent technological centre also in
manufacturing should position the Indian Automotive Industry as a fast growing
sector.
The rising consumer prices and interest rates are a cause of concern and can
slow down the growth rate. Focused reforms aligned with concentrated efforts to
reduce the budget deficits are very much essential for the sustained growth.
More reforms aimed at improving the infrastructure within the targeted
timelines through active private participation are very much essential for the
overall economic development in the long run. It is also important to further
improve the education and training facilities to meet the long term requirement
of skilled manpower by the Indian manufacturing Industry.
Opportunities:
With a strong technological base and a wide product range, the Company is in a
position to take advantage of the buoyancy in the economy. The growing
acceptance of Diesel cars in the Indian market will lead to increased demand
for Common Rail Systems. The Company has already created manufacturing
facilities to meet this demand and will continue to do so. Being a low cost
location, the Company also sees increasing opportunities for export. With the
Government's focus on infrastructure, the Company's Non-Automotive sectors like
Power Tools and Security Systems are also expected to maintain their current
momentum.
The company is in trade terms with :
· Abhishek Alloys Private Limited
· Accurate Engineering Private Limited
· Control Infotech Limited
· Kanthi Precision Private Limited
· Prasa Tools Private Limited
· Klass Engineering Private Limited
· Pragati Machine Tools Corporation
· Chemoleums Private Limited
· Race Technologies Private Limited
· Riviera Packers Private Limited
· Gole Precision Tools Private Limited
· Fastener Manufacturers Private Limited
· Mukund Industries
· Karnataka Electronics
· Jaycee Industries
· R. B. Associates Private Limited
· TA Hydraulics Private Limited
· Bhat Metal Research Private Limited
· Finetech Engineering
The company’s fixed assets of important value include Freehold & Leasehold Land, Buildings, Plant & Machinery, Furniture & Equipments and Motor Vehicles.
|
Contingent
liabilities: |
Rs in Millions |
|
Claims against the
Company not acknowledged as debts: |
|
|
Excise / Customs |
|
|
Net of tax |
7.485 |
|
Gross |
11.805 |
|
Sales Tax Net of
tax Gross |
|
|
Net of tax |
0.388 |
|
Gross |
0.585 |
As per website
The Bosch Group is one
of the world’s biggest private industrial corporations. Headquartered in
Stuttgart, Germany, the Bosch Group has approx. 261,300 employees worldwide,
and generated annual sales revenue of 43.7 billion euros in 2006.
In India, the Bosch
Group has about 15,817 employees, and in business year 2006 achieved total
consolidated sales of Rs 50,087 million.
Bosch has grown
phenomenally in India, way back since 1922 when the Illies Company established
a Bosch agency in the then British India. The founding of Bosch Limited in
1951 spurred off an accelerated growth in the automotive segment which has not
stopped till date. Bosch has a strong and voracious presence in the country
today at numerous locations in diverse industry segments - both automotive and
non-automotive.
In India, the Bosch
Group is comprised of the following companies -
- Bosch Limited (formerly ‘Motor
Industries Company Limited)
- Robert Bosch Engineering and Business
Solutions Limited
- Bosch Chassis Systems India Limited
- Bosch Rexroth India Limited
Subject is the
flagship of the Bosch Group subsidiaries in India. Founded in 1951, the company
has emerged to become India’s largest auto component manufacturer and a leading
exporter. It is the largest manufacturer of diesel fuel injection equipment in
the country.
Subject employs
about 10,033 associates, and in business year 2006 generated net sales of
Rs 37,837 million with good growth in both automotive as well as the
non-automotive businesses.
Subject has presence
across all the three major business sectors of Bosch - Automotive Technology,
Industrial Technology, Consumer Goods and Building Technology. Diverse business
areas include common rail injectors and components, diesel fuel injection
equipment, industrial equipment, auto-electricals, hydraulics, electric power
tools, packaging machines, security systems and Blaupunkt car audio systems.
The nationwide
network of automotive aftermarket services spans across 1000 towns with over
4,000 authorized representations.
Corporate office is
located at Bangalore, India; with state-of-the-art ISO and TS 16949 certified
manufacturing plants at Bangalore, Naganathapura (near Bangalore), Nashik and
Jaipur. Of these, the Nashik and Naganathapura Plants are export oriented units.
Export Orient Unit
Subject has advanced
ISO certified manufacturing plants at Bangalore, Naganathpura (near Bangalore),
Nashik and Jaipur. Of these Naganathapura and Nashik plants also house Export
Oriented units
Corporate
Notices
Source:
NSE - Motor
Industries Company Limited has informed the Exchange vide its letter dated
January 18, 2008 that: "We have today received electronic confirmation
from Registrar of Companies(ROC), Karnataka approving the change of name of the
company to Bosch Limited." Date:
2008-01-19
Source:
BSE -
Motor Industries Company Limited (MICO) has informed BSE that on January 18,
2008 the Company has received electronic confirmation from Registrar of Companies
(ROC), Karnataka approving change of name of the Company to "Bosch
Limited".
Date: 2008-01-18
Source:
NSE -
Motor Industries Company Limited has informed the Exchange that shareholders at
the Extraordinary General Meeting of the company held on January 07, 2008
approved:(1) The Change of name of the Company from "Motor Industries
Company Limited" to "Bosch Limited", subject to necessary
government approval; (2) The appointment of Mr.V.K. Viswanathan as Director of
the Company; (3) The appointment of Dr.Manfred Duernholz as Director of the
Company;(4) The appointment of Mr.V.K. Viswanathan as Joint Managing Director
of the Company from 01.11.07 to 31.01.08 and as Managing Director of the
Company from 01.02.08 and the payment of remuneration to him; (5) The extension
of the term of Mr. M. Lakshminarayan, Joint Managing Director for the period
from 01.07.08 up to 31.12.08;(6) The appointment of Dr. Manfred Duernholz as
Joint Managing Director of the Company from 01.02.08 to 31.12.11 and the
payment of remuneration to him;(7) Payment of service award to Mr. M.
Lakshminarayan, Joint Managing Director of the Company; (8) Revision in the
remuneration and perquisites of Dr. F.Allerkamp, Joint Managing Director with
effect from 01.05.06. Date:
2008-01-07
CMT REPORT
(Corruption, Money Laundering & Terrorism]
The Public Notice information has been collected from various sources
including but not limited to: The Courts, India Prisons Service,
Interpol, etc.
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.39.48 |
|
UK Pound |
1 |
Rs.77.44 |
|
Euro |
1 |
Rs.57.75 |
SCORE & RATING
EXPLANATIONS
|
SCORE FACTORS |
RANGE |
POINTS |
|
HISTORY |
1~10 |
9 |
|
PAID-UP CAPITAL |
1~10 |
9 |
|
OPERATING SCALE |
1~10 |
9 |
|
FINANCIAL CONDITION |
|
|
|
--BUSINESS SCALE |
1~10 |
9 |
|
--PROFITABILIRY |
1~10 |
8 |
|
--LIQUIDITY |
1~10 |
9 |
|
--LEVERAGE |
1~10 |
9 |
|
--RESERVES |
1~10 |
9 |
|
--CREDIT LINES |
1~10 |
9 |
|
--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 |
|
80 |
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 |
|