MIRA
INFORM REPORT
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Report Date : |
22.09.2008 |
IDENTIFICATION
DETAILS
|
Name : |
BOSCH CHASSIS
SYSTEMS INDIA LIMITED |
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Formerly Known As : |
KALYANI BRAKES
LIMITED |
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Registered Office : |
Panchshil, Quadar
1, Magarpatta City Road, 238, Hadsar, Pune-411028, Maharashtra |
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Country : |
India |
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Financials (as on) : |
31.12.2007 |
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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 : |
Manufacturer of
Automotive brake Systems and Components. |
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 9500000 |
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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 : |
Panchshil, Quadar
1, Magarpatta City Road, 238, Hadsar, Pune-411028, Maharashtra, India |
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Tel. No.: |
91-20-39870302 |
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Fax No.: |
91-20-26810007 |
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E-Mail : |
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Website: |
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Corporate
Office : |
Aurora Towers, 4th
Floor, 9, Moledina Road, Pune – 411 001, Maharashtra, INDIA |
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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, Maharashtra |
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Factory 2 : |
Nanekarwadi, Tal-Khed, District – Pune, Maharashtra, India |
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Tel. No.: |
91-20-39870302 |
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Fax No.: |
91-20-26810007 |
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Factory 3 : |
Plot No. 9,
Sector 3, Ch. Devilal Imt Manesar, Gurgaon, Haryana, India |
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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 : |
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Factory 4: |
Eldeco Sidcul
Industrial Park, Sitargarj, District. Udham Singh Nagar – 262403, Uttarkhand,
India |
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 |
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Name : |
Mr. V K Vishwanathan |
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Designation : |
Director |
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Name : |
Mr. Sekhri S |
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Designation : |
Managing Director |
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Date of Birth/ Age : |
58 Years |
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Qualification: |
B.E (Mechanical), M.B.A |
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Experience: |
34 Years |
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Date of Appointment: |
04.08.1994 |
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Other directorship: |
Vice President (Engineering Division) Escorts Limited |
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 |
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Name : |
Mr. Ravi Kapoor |
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Designation : |
Executive Vice President and Chief
Financial Officer |
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Date of Birth/ Age : |
52 Years |
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Qualification: |
B Tech, MMS |
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Experience: |
28 Years |
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Date of Appointment: |
01.09.2006 |
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Other directorship: |
Piaggio Vehicles Private Limited ( Director
(Finance)) |
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Name : |
Mr. Berg A |
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Designation : |
Vice President ( ABS and ESP) |
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Date of Birth/ Age : |
39 Years |
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Qualification: |
Diploma in Mathematics and Computer
Science (Germany) |
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Experience: |
14 Years |
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Date of Appointment: |
08.10.2007 |
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Other directorship: |
Project Manager, Robert Bosch GmbH
Abstatt, Germaby ( 3 years) |
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Name : |
Mr. Mahendra D S |
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Designation : |
Executive Vice President (Chakan) |
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Date of Birth/ Age : |
55 Years |
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Qualification: |
B Tech, |
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Experience: |
33 Years |
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Date of Appointment: |
01.01.1988 |
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Other directorship: |
Manager (Materials) Bharat Forge Limited |
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Name : |
Mr. Matsumra K |
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Designation : |
Technical Advisor |
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Date of Birth/ Age : |
55 Years |
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Qualification: |
B E ( Mechanical) |
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Experience: |
33 Years |
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Date of Appointment: |
01.09.2006 |
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Other directorship: |
Vice President (Quality) Robert Bosch
GmbH, Japan |
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Name : |
Mr. Mergenthaler R |
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Designation : |
Integration Manager |
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Date of Birth/ Age : |
60 Years |
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Qualification: |
Diploma Engineering, Gemany |
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Experience: |
36 Years |
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Date of Appointment: |
15.06.2006 |
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Other directorship: |
Vice President (Quality) Robert Bosch
GmbH, Germany |
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Name : |
Mr. Nanbjanath A R |
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Designation : |
Executivbe Vice President (Jalgaon) |
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Date of Birth/ Age : |
60 Years |
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Qualification: |
B.Tech, S.Sc (Engineering), London |
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Experience: |
38 Years |
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Date of Appointment: |
16.12.2002 |
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Other directorship: |
Vice President ( Manufacturing) Rane
(Madras) Limited |
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Name : |
Mr. Pangarkar S N |
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Designation : |
Executive Vice President (New Project) |
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Date of Birth/ Age : |
59 Years |
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Qualification: |
B.E (Mechanical) M.Tech, M.B.A |
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Experience: |
35 Years |
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Date of Appointment: |
05.04.1998 |
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Other directorship: |
General Manager, Hindustan Motors Limited |
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Name : |
Mr. Wagner A |
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Designation : |
Vice President (Testing and Engineering
New Project) |
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Date of Birth/ Age : |
45 Years |
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Qualification: |
Diploma in Engineering, Germany |
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Experience: |
22 Years |
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Date of Appointment: |
04.09.2006 |
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Other directorship: |
Sales Manager and Project Leader, Robert
Bosch GmbH, Germany |
SHAREHOLDING
PATTERN
As on 31.12.2007
|
Names of Shareholders |
No. of Shares |
Percentage of
Holding |
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Promoters |
16634094 |
79.99 |
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Mutual Funds |
803328 |
3.86 |
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Financial Institutions |
5830 |
0.03 |
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FIIs (Foreign Mutual Funds) |
38212 |
0.18 |
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Bodies Corporate |
824927 |
3.98 |
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NRIs/OCBs |
42833 |
0.21 |
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Indian Public |
2443776 |
11.75 |
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Total |
20793000 |
100.00 |
BUSINESS DETAILS
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Line of Business : |
Manufacturer of
Automotive brake Systems and Components. |
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Products : |
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PRODUCTION STATUS
AS ON 31.03.2006
|
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) |
|
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 and Company Chartered Accountants |
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Name : |
Lovelock and Lewes
Chartered Accountant |
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Name : |
Internal Auditor Deloitte Haskins and Sells Chartered Accountant |
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Associates/Subsidiaries : |
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Joint
Ventures - |
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CAPITAL STRUCTURE
As on 31.12.2007
Authorised Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
25000000 |
Equity Shares |
Rs. 10/- each |
Rs.250.000
Millions |
Issued, Subscribed & Paid-up Capital :
|
No. of Shares |
Type |
Value |
Amount |
|
20793000 |
Equity Shares |
Rs. 10/- each |
Rs.207.930
Millions |
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(Of the above shares,
10396500 shares (Previous year Nil) of Rs. 10 each are allotted as fully paid
bonus shares by capitalization of share premium) |
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FINANCIAL DATA
[all figures are in Rupees Millions]
ABRIDGED BALANCE
SHEET
|
SOURCES OF FUNDS |
31.12.2007 12 Months |
31.12.2006 ( 9 Months) |
31.03.2006 (12 Months) |
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SHAREHOLDERS FUNDS |
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1] Share Capital |
207.930 |
103.965 |
103.965 |
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2] Share Application Money |
0.000 |
0.000 |
0.000 |
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3] Reserves & Surplus |
1694.105 |
1456.808 |
1260.906 |
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4] (Accumulated Losses) |
0.000 |
0.000 |
0.000 |
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NETWORTH |
1902.035 |
1560.773 |
1364.871 |
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LOAN FUNDS |
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1] Secured Loans |
0.000 |
0.000 |
0.000 |
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2] Unsecured Loans |
425.109 |
438.024 |
452.682 |
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TOTAL BORROWING |
425.109 |
438.024 |
452.682 |
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DEFERRED TAX LIABILITIES |
38.472 |
64.387 |
90.900 |
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TOTAL |
2365.616 |
2063.184 |
1908.453 |
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APPLICATION OF FUNDS |
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FIXED ASSETS [Net Block] |
1098.875 |
1016.856 |
989.219 |
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Capital work-in-progress |
235.370 |
75.226 |
53.076 |
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INVESTMENT |
499.663 |
468.105 |
537.869 |
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DEFERREX TAX ASSETS |
0.000 |
0.000 |
0.000 |
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CURRENT ASSETS, LOANS & ADVANCES |
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Inventories |
477.170 |
409.731 |
309.503 |
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Sundry Debtors |
1005.890 |
896.171 |
981.828 |
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Cash & Bank Balances |
139.657 |
107.042 |
83.560 |
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Other Current Assets |
10.321 |
4.822 |
0.677 |
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Loans & Advances |
252.491 |
190.045 |
153.068 |
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Total Current Assets |
1885.529 |
1607.811 |
1528.636 |
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Less : CURRENT LIABILITIES & PROVISIONS |
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Current Liabilities |
1105.327 |
895.954 |
926.700 |
|
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Provisions |
248.494 |
208.860 |
273.647 |
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Total Current Liabilities |
1353.821 |
1104.814 |
1200.347 |
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Net Current Assets |
531.708 |
502.997 |
328.289 |
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MISCELLANEOUS EXPENSES |
0.000 |
0.000 |
0.000 |
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TOTAL |
2365.616 |
2063.184 |
1908.453 |
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PROFIT & LOSS
ACCOUNT
|
PARTICULARS |
31.12.2007 12 Months |
31.12.2006 ( 9 Months) |
31.03.2006 (12 Months) |
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Sales Turnover |
5306.762 |
3538.431 |
4328.743 |
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Other Income |
233.996 |
166.535 |
198.966 |
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Total Income |
5540.758 |
3704.966 |
4527.709 |
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Profit/(Loss) Before Tax |
628.191 |
403.141 |
813.309 |
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Provision for Taxation |
212.251 |
139.450 |
242.719 |
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Profit/(Loss) After Tax |
415.940 |
263.691 |
570.590 |
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Earnings in Foreign Currency : |
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Export Earnings |
300.175 |
253.784 |
515.202 |
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Other Earnings |
55.870 |
9.714 |
13.395 |
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Total Earnings |
356.045 |
263.498 |
528.597 |
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Imports : |
|
|
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Raw Materials |
368.624 |
272.548 |
324.694 |
|
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Stores & Spares |
89.656 |
41.026 |
18.557 |
|
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Capital Goods |
30.668 |
16.130 |
13.016 |
|
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Others |
0.000 |
0.000 |
0.000 |
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Total Imports |
488.948 |
329.704 |
356.267 |
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|
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Expenditures : |
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|
|
|
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Manufacturing Expenses |
969.093 |
686.764 |
779.832 |
|
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Employees’ Emoluments |
451.517 |
277.597 |
335.827 |
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Raw Material Consumed |
3301.219 |
2179.410 |
2545.095 |
|
|
Increase/(Decrease) in Finished Goods |
[30.300] |
[35.385] |
[4.460] |
|
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Interest and Financial Charges |
8.034 |
5.888 |
6.148 |
|
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Depreciation & Amortization |
213.004 |
187.551 |
266.448 |
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Total Expenditure |
4912.567 |
3301.825 |
3928.890 |
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QUARTERLY RESULTS
|
PARTICULARS |
|
30.03.2008 1st
Quarter |
31.03.2008 2nd Quarter |
|
Sales
Turnover |
|
1282.900 |
1377.700 |
|
Other
Income |
|
87.600 |
72.600 |
|
Total
Income |
|
1370.500 |
1450.300 |
|
Total
Expenditure |
|
1194.300 |
1224.000 |
|
Operating
Profit |
|
176.200 |
226.300 |
|
Interest |
|
1.100 |
1.600 |
|
Gross
Profit |
|
175.100 |
224.700 |
|
Depreciation |
|
52.700 |
58.200 |
|
Tax |
|
39.200 |
59.300 |
|
Reported
PAT |
|
83.200 |
107.200 |
KEY RATIOS
|
PARTICULARS |
31.12.2007 12 Months |
31.12.2006 ( 9 Months) |
31.03.2006 (12 Months) |
|
Debt Equity Ratio |
0.25 |
0.30 |
0.40 |
|
Long Term Debt
Equity Ratio |
0.25 |
0.30 |
0.39 |
|
Current Ratio |
1.35 |
1.25 |
1.14 |
|
TURNOVER RATIOS |
|
|
|
|
Fixed Assets |
2.85 |
2.86 |
2.80 |
|
Inventory |
13.85 |
15.38 |
17.40 |
|
Debtors |
6.46 |
5.89 |
6.11 |
|
Interest Cover
Ratio |
79.48 |
69.27 |
97.47 |
|
Operation Profit
Margin (%) |
13.82 |
14.37 |
17.51 |
|
Profit Before
Interest and Tax Margin (%) |
10.35 |
9.85 |
12.15 |
|
Cash Profit
Margin (%) |
10.24 |
10.88 |
13.88 |
|
Adjusted Net
Profit Margin (%) |
6.77 |
6.36 |
8.53 |
|
Return on Capital
Employed (%) |
29.40 |
28.56 |
37.57 |
|
Return on Net
Worth (%) |
24.02 |
24.04 |
36.85 |
LOCAL AGENCY
FURTHER INFORMATION
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, Maharashtra.
In FY 2000-01, NABCO Limitedof Japan, one of the promoters has sold their
equity stake(26.66%) in the company to the other two promoters viz. Robert
Bosch Corp. of USA, and Kalyani Group of India in equal proportion.
Kalyani Brakes(KBX), a JV company between Kalyani Group of India and Robert
Bosch Corp of USA is into manufacture of Brake systems meant for automotive
applications i.e Hydraulic, Air and Air over Hydraulic brake components. The
company which aims to cater all the segments of the automobiles industry i.e
agri tractors, CVs, two/three wheeleers and passenger cars keep on upgrading
its technology by Collaborating with Wold leaders. Bosch Braking Systems
provides state of the art technology from Japan and France for Vehicles of
Japanese and European Origin respectively. Brembo S.P.A. of Italy helped KBX to
introduce Hydraulic disc brakes for Indian motorcycles for the first time,
Titan Italia S.P.A. helped KBX in wet brakes for Indian Agriculture tractor applications.
The company has also tied up with Japan Brake Industrial Company Limited for
the Brake Shoe bonding technology in upgrading and expanding of KBX's products
range.
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 370.000 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, 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, Japan for
brake shoe bonding technology help in manufacturing imported brake shoes for
various passenger cars. This bonding technology would be utilised in the
vehicles coming out of the Maruti's stable which includes Alto, Wagon R, Baleno
and the new vehicle to be launched in Jan.'2001. The company is also targetting
other models.
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 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
Italy, a 50:50 joint venture for application engineering, production and sales
of two-wheeler brakes.
Directors
Report:
With effect from 1st February 2008, Mr. V.K. Viswanathan was appointed
as a Director in place of Dr. Albert Hieronimus. Mr. Viswanathan, 57, a
Chartered Accountant, is the Managing Director of Bosch Limited, A Bangalore
(formerly Motor Industries Company Limited) and is associated with Bosch group
for over 11 years. Mr. Viswanathan holds office as Director upto the date of
the ensuing Annual General Meeting to be held on t 29th April, 2008. The
Company has received notice under Section 257 of the Companies Act, 1956,
proposing his appointment as Director, liable to retire by rotation.
Dr. Wilfried Aulbur was appointed as an Independent Director on 20th January
2006 in place of Mr. H.M. Huber. Dr. Aulbur, 42, completed his graduate studies
in Europe and the US. He received a Doctorate in Physics from the Ohio State
University from USA. Currently he is the Managing Director & CEO of
DaimlerChrysler India Private Limited Dr. Aulbur holds office as Director upto
the date of the ensuing Annual General Meeting to be held on 29th April, 2008.
The Company has received notice under Section 257 of the Companies Act, 1956,
proposing his appointment as Director, liable to retire by rotation.
In accordance with the provisions of the Companies Act, 1956 and the Articles
of Association of the. Company, Mr. Peter Delhey, Director of the Company
retires by rotation and being eligible, offers himself for
re-appointment.
Mr. Peter Delhey, 45, completed his Advanced Studies in Economics from
the University of Freiburg, Germany. He has been associated with the Bosch
group since 1990. Currently he is the Executive Vice President, Chassis Systems
Brakes, Robert Bosch GmbH, Germany. Mr. Delhey holds office as Director upto
the date of the ensuing Annual General Meeting to be held on 29th April, 2008.
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.
(i) Maintaining power factor at unity thereby reducing electrical
consumption and yielding incentive.
(ii) Adding air saving unit in Jalgaon plant thereby reducing electrical
energy.
(iii) Replacing exhaust fans by Turbo ventilators (powered by Wind
energy) reducing electrical energy.
(iv) Replacing high pressure pumps by Hydro pneumatic pumps reducing
electrical energy.
(v) Installing transformer at HT side instead of at LT side reducing
electrical energy.
(vi) Installing energy efficient lighting in place of sodium vapour lamp
thereby reducing electrical energy.
(vii) Installing fuel saver on DG set thereby saving diesel
consumption.
(viii) Replacing fixed displacement hydraulic pumps by energy efficient
variable displacement pumps.
(ix) Replacing conventional washing machine temperature controller by
proportional integrated and derivative controller thereby reducing electrical
energy.
Operations:
Technology
absorption, adaptation and innovation:
1. Efforts, in brief, made towards : Contemporary technology &
technology absorption, adaptation and designs for brake systems were
innovation. obtained from European/Japanese sources. Superior process and
control techniques were deployed for achieving these design features in the
regular production.
2. Benefits derived as a result of the : Such product improvements, cost
above efforts e.g. product improvement, reduction etc. enabled the cost
reduction, product development, Company to maintain its import substitution, etc.
competitive position and share of business with lcading Indian customers and
also win contracts from global customers launching new products in the Indian
market.
3. In case of imported technology } : i) Technology acquired for
(imported during the last 5 years } brake systems for older models reckoned
from the beginning of the } of Maruti and Mahindra has been financial year)
following information } fully absorbed.may be furnished: } } ii) Technology for
brake (a) Technology imported } systems for new Indian } passenger cars,
acquired in (b) Year of Import } 2004-05 & 2005-06 is being } absorbed
progressively. These (c) Has technology been fully } new designs of brake
systems absorbed? } are under phased localisation. }(d) If not fully absorbed,
areas } Commercial application of above where this has not taken place, }
technologies has started. reasons there for and future plans of } Recurring
benefits will action. } continue to be received over the next 3 to 5
years.
MANAGEMENT DISCUSSION AND ANALYSIS:
Economic Trends:
After a promising start in the first quarter of the year 2007, the Indian
economy showed signs of faltering in the second half of the year. Rising
inflation due to escalating oil, commodity and food prices prompted the RBI to
enhance interest rates with a view to cool down the economy showing signs of
over-heating. A direct fall-out of high interest rates is a lowered forecast
for GDP growth - from 9.5% to around 3.5% with the Manufacturing segment
showing a clear slow-down. The appreciation of the Indian Rupee against the USD
by over 12% during the year has adversely impacted the profitability of
exporters across industry segments. Turmoil in the stock-market has added to
the concerns leading to a low Business Confidence Index. However, Government's
focus on curbing inflation and various policy initiatives aimed at neutralizing
the impact of the appreciating rupee should help to sustain the long term
growth momentum.
Indian Automobile Industry:
In line with the overall economic slowdown, the automobile industry as a whole
registered a negative growth of 0.5% in 2007 over 2006 as against 16.5%
positive in 2006 over 2005. While both passenger and commercial vehicle
segments showed positive growth in 2007 although at lower rates than in 2006,
the two and three wheeler segments registered sharply negative trends as
compared to the aggressively positive trends shown in 2006. The motorcycle
segment which for the first time in ten years saw a decline of 7% in 2007 has
been the worst hit. High interest rate is the main reason for the
decline.
Nevertheless, the high decibel launch of the "Rs.One Lakh" car - the
NANO by Tata Motors Limited during the Auto Expo 2008 has created much
excitement in the market. The product is well positioned to meet the
requirements of a growing segment of the population aspiring for personal
mobility and having the means to fulfill its need. Convinced of the feasibility
of making a car in less than USD 3,000 and not wanting to miss the opportunity,
some major OEMs also have announced plans to offer comparable products over the
next 2 to 3 years.
It is expected that the "Small Car" segment will give the automobile
industry a much needed boost. Inadequate roads and high interest rates could be
the only constraints to rapid expansion of volumes.
To counter the challenges posed by soaring fuel prices and increasing air
pollution, Indian manufacturers have accelerated their efforts to offer
environmentally friendly vehicles. Prototypes are ready with some major Indian
OEMs.
Operations:
The Company is focussed on constantly improving its business processes to
quickly respond to the changing needs of customers and to optimize resource
utilization. Significant improvements were carried out at all three plants
during the year 2007.
To cater to OEM customers as also to the rapidly growing After Market, the
Company set up its fourth plant at Sitarganj (Uttarakhand). The plant has
commenced series production.
To serve the needs of Tata's NANO, the company is setting up its fifth plant at
Singur (West Bengal). The plant would be ready by July 2008 for series
production to coincide with the Start of Production of the small car.
Orders have been acquired for supplying brake components and systems for new
vehicle models to be launched in the Indian market. This includes Toyota's new
small car specially targeted at the BRIC countries to be launched in India
first.
The company is also actively implementing a project at Chakan (Pune) to locally
manufacture advanced brake systems incorporating features such as Anti-Skid
Braking (ABS) and Electronic Stability (ESP). While these features are standard
fitment on nigh-end cars, with increased consumer awareness and focus on
safety, these are expected to be offered in mid and lower range cars also.
Series production is planned to commence in the first half of 2009.
Financial Performance:
The current reporting period is of 12 months, i.e. from January to December
while the previous reporting period was of 9 months, i.e. April to December
pursuant to the change in the financial year last year. Hence, the figures for
the two periods are not comparable.
Outlook:
There is cautious optimism that the Indian economy would continue to grow at a
rate above 8.5% p.a. Notwithstanding the recent turmoil in the stock market,
the bullish undercurrent is borne out by the continuous and heavy inflow of
investment funds by FIIs. While the strengthening Indian Rupee is adversely
impacting export earnings, there is a silver lining in the form of a natural
hedge against rising prices of crude oil.
The likely softening of interest rates and the expected market expansion from
Tata's low cost car will revive the growth momentum in the Indian Automobile
Industry. However, commodity inflation, uncertain economic conditions in the
world's largest consumer market, viz. USA, and delays in policy reform and in
policy reform and in implementation of critical infrastructure projects in the
country could adversely impact the growth rate.
As in the past, the Company shall proactively seek opportunities and respond to
challenges. However, declining orders from traditional export markets and the
transfer of the two wheeler brake business to the joint-venture would result in
moderate growth in 2008. From 2009 onwards, momentum will pickup again.
Opportunities:
The Company is investing in a world-class Design & Test Centre with active
support from Bosch. This facility will equip the Company to offer products
meeting the stringent NVH and other performance requirements of new generation
vehicles planned to be offered in the Indian market by existing OEMs and new
entrants both domestic & international. As mentioned earlier in this note,
leading Indian and international vehicle manufacturers are planning to launch
their low cost cars in the near future. The Company's strong focus and early
presence in this category will yield good results in the near future.
With rising consumer awareness about safety, the fitment of ABS and other
Electronic Braking Solutions in, domestic vehicles is poised to become a
significant business. This is a mandatory fitment in most export vehicles. As a
leading brake system supplier in India, the Company has already established a
foothold in this segment by offering these advanced products to Indian
customers with support from Bosch. With this, the Company will be in a position
to offer comprehensive braking solutions covering both traditional and advanced
brake products.
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, Japan for brake shoe bonding technology. Commercial
production of brake shoes would help in manufacturing imported brake shoes for
various passenger cars. This bonding technology would be utilised in the
vehicles coming out of the Maruti’s stable which includes Alto, Wagon R, Baleno
and the new vehicle to be launched in January, 2001. The company is also
targetting other models.
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, Coimbatore for truck air brakes etc.
Bosch India is regional branch of the Bosch Group, one of the world’s
biggest private industrial corporations. Headquartered in Stuttgart, Germany,
the Bosch Group has approx. 251,000 employees worldwide, and generated an
annual sales revenue of 41.5 billion euros in 2005.
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 India, way back since 1922 when the Illies company
established a Bosch agency in British India. The founding of Motor Industries
Company Limited in 1951 spurred off an accelerated growth in the automotive
industry segment which has not stopped till date. Bosch has a strong and
voracious presence in the country today, in diverse industry segments at
numerous locations.
In India, Bosch is
represented in by its subsidiary companies -
1) Motor Industries
Company Limited - MICO
2) Robert Bosch India Limited – RBIN
3) Bosch Rexroth India Limited – BRIN
4) Bosch Chassis System India Limited
Fixed Assets:
·
Freehold Land
·
Leasehold Land
·
Building
·
Leasehold Building
·
Plant and Machinery
·
Furniture
·
Vehicles
As per website
Profile:
Subject manufactures automotive brake systems and components. They
provide hydraulic, air, and air over hydraulic brake component. The hydraulic
brake components include rear brake assembly, tandem master cylinder, front
caliper assembly, rotors, and two wheeler brakes. The products are used to
sports utility vehicles, passenger cars, two and three wheelers and tractors.
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 India, foraying into the
manufacturing of common-rail diesel injector systems. In India,
Automotive Technology represents the largest area of business, supplying both
to the local automotive industry as well as exporting components around the
world.
Consumer goods and
building technology
In
India, this sector is engaged in the Power Tools and Security Systems
divisions. Bosch is the world leader in the power tools segment and has
been the pioneer in DIY (Do-it-themselt) across different countries, including
India. Bosch Security Systems globally has more than 80 years of experience in
fire detection and alarm systems. In India, Bosch Security Systems is one
of the leading security technology players with a comprehensive portfolio.
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 India is the largest development centre of Bosch
outside Germany. For over 15 years now it has been the preferred engineering
services and solutions partner
Another first from
Bosch for the Indian Automotive Industry
• First in India to
start manufacturing Common Rail High Pressure Pumps & Injectors
• Bosch Common Rail
to bring new driving pleasure and economy to the Indian car owner
Bangalore, June 01, 2006: Bosch announced the launch of its first manufacturing
facility in the country for Common Rail High Pressure pumps at Bangalore,
thereby further expanding its presence in India. Bosch has already announced an
investment of Rs 18000 Millions in India between 2005 and 2008, of which Rs
5500 Millions have been earmarked for the establishment and expansion of Common
Rail System production in Nashik and Bangalore. The new production line in
Bangalore has an initial installed capacity of upto 1,000 Common Rail High
Pressure pumps per day. Bosch has been manufacturing Common Rail injector
components at its Nashik facility since the beginning of 2006 and has a current
capacity of 4000 injector component sets per day. It plans to start production
of complete Common Rail injectors from the same facility in 2007.
“Diesel
vehicles are becoming increasingly popular in India,” said Dr Bernd Bohr,
Member, Bosch Board of Management on the occasion. “We expect to see diesel’s
share in the Indian car and utility vehicle market rise from its current 30 to
more than 40 percent by 2010, and Bosch is well positioned to support this
growth. We have designed the new manufacturing facilities so that we can
flexibly serve the requirements of automakers, especially the local
manufacturers,” he added. In 2005, Bosch sold around 40,000 Common Rail systems
in India. In 2010, this figure is expected to be as high as 6,00,000 systems.
“Nearly every automaker in India has now announced that it will be launching
diesel cars with Common Rail technology,” Dr Bohr said. On an average, diesel
engines consume around 30 percent less fuel than a comparable gasoline engine —
and emit significantly less oxides of carbon. In addition, diesel is 30 percent
less expensive than gasoline in India.
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 India were as high as Rs
40 billion in 2005 and expected to increase by 17 percent to 47 billion in
2006. “India is one of the growth motors for the business in Asia Pacific,”
said Dr Bohr.
With
around 1.3 million cars and utility vehicles manufactured in 2005, India is
already Asia’s fourth largest car market. Currently only seven out of every
1000 persons in India are carowners and this represents a huge potential for
growth. Assuming that a quarter of a large number of the two wheeler owners
upgrade to a car in the medium term, there is an additional sales potential of
more than 1 million cars per year. This is particularly significant given the
fact that more than 75% of car sales in India are in the compact low priced
vehicle segment costing less than Rs 4,00,000. “Given these growth predictions,
India could be one of the world’s five most important automobile markets by the
beginning of the next decade,” Dr Bohr said. The country is also the world’s
largest motorcycle market and the largest market for tractors and
three-wheelers. Supporting this growth are nearly 50,000 kilometres of Indian
roads, which are being widened by 2012.
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 India and will continue to do so in the coming years.
Bosch flagship -
Motor Industries Company Limited, India's leading automotive components
supplier
Bosch
has had an active presence in India for about 80 years – first through its
representative office in Kolkata, and then from 1951 onwards through its
flagship subsidiary Motor Industries Company Limited, headquartered in
Bangalore. Diesel and Gasoline fuel injection systems, starters, alternators,
spark plugs form some of the important products within its automotive range.
With some 4,000 sales outlets, 770 workshops and nearly 100 Bosch Car Service
outlets, Mico owns India’s largest automotive aftermarket network.
India
not only plays a key role in the production network of Bosch but also in its
development activities. Robert Bosch India Limited, a wholly owned subsidiary
of Bosch in India, headquartered in Bangalore, is the company's largest
software development center outside Germany. By the end of 2006, it will employ
around 3,000 associates working on software development for intelligent vehicle
systems. Worldwide, Bosch spends some 9 percent of its sales revenue in its
Automotive Technology business sector on Research and Development – far more
than the average in the industry. The company is also the world leader when it comes
to filing patents related to Automotive Technology.
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 Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for
Precision Mechanics and Electrical Engineering,” the Bosch Group today
comprises a manufacturing, sales, and after-sales service network of more than
280 subsidiaries and more than 12,000 Bosch Service Centers in over 140
countries.
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 India. Founded in 1951, it has grown over the years to
become India’s largest auto component manufacturer. It is also the largest
Indo-German company.
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 Bangalore with facilities in Bangalore,
Nashik, Naganathapura and Jaipur. All the 4 plants are TS 16949 and ISO 14001
certified. With strength of over 9800 associates, the company manufactures and
trades products as diverse as fuel injection equipment, industrial equipment,
auto-electricals, hydraulics, electric power tools, packaging machines,
security systems and Blaupunkt car audio systems.
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 India to develop it as a technology hub, the company is
gearing up to meet the challenges.
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 Bangalore, India; with state-of-the-art and ISO certified
Export Oriented
Units
Mico 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.
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 India as
well. The latest campaign reflects this global competence and communicates the
benefits to customers in India.
Bosch and India -
Driving together since 1922
Bosch,
has its headquarters at Stuttgart, Germany, and shares a long standing
relationship with India. The 'Stuttgart ad' elaborates about Bosch's presence
in India and of its commitment to the Stuttgart-India relationship.
In
this context, they have released an advertisement that proclaims “Bosch and
India. Driving together since 1922.” It goes on to elaborate about Bosch’s
presence in India and of its commitment to the Stuttgart-India relationship.
Launch of the Bosch
Brand in India at the 8th Auto Expo – 2006
Bosch’s
participation at the 8th Auto Expo 2006 is a landmark event, since it marks the
launching of the Bosch brand in India in its largeness.
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 India based on the 3S principle
In
India, Bosch is working together with Mico to make mobility safe, clean and
economical, following the 3S principle of Bosch.
‘Safe - sicher’ Ad
The
‘Safe’ ad has been created to highlight Bosch’s pioneering efforts to promote
corporate responsibility in India. The advertisement communicates Bosch’s
global concern on safety and innovation in new technologies through investment
of billions of euros in research and development.
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 India. It highlights the fact that you as a
customer is assured of the environment-friendly technology of Bosch. It
highlights automotive technologies such as the Common Rail System that help
reduce emission levels of vehicles.
‘Economical -
Sparsam’ Ad
For
India, Common Rail Systems have the potential to satisfy the stringent Bharat
stage-III norms stipulated for automobiles in metropolitan cities.
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 India and at large outdoor hoardings.
‘Environment Day’
Ad
Mico
commemorated WED, 2005 at the Bangalore headquarters, and at all the plants. In
Bangalore, the kickoff event witnessed participation from over a 1000 school
children, residents and NGOs EcoWatch and Suchi Mitra. Mico also co-sponsored
the ‘Seminar on Transport and Environment Friendly Technologies (STEFT), 2005,
in association with Karnataka State Pollution Control Board. The seminar
showcased environmentally safe technology inventions by Bosch.
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 INDIA. The jury focused on the advances made in
automotive technology which also have bearing on safety.
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 India, both in user terms as
well as in manufacturing terms.
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 India
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, Pune, India, its 40
percent equity holding of the Indian brake manufacturer Kalyani Brakes Limited, Pune. Bosch holdings in the company have thus grown to 80 percent. An
agreement to this effect was reached on July 16th, 2005. Kalyani Brakes was previously operated as a joint venture between Bosch and the Kalyani Group, each with a 40 percent holding. The rest of the
shares are widely held.
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 India, including
manufacture of the antilock braking system ABS. The company thus plans to
utilize the opportunities in a rapidly growing market for passenger cars.
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 India by its subsidiary companies Motor
Industries Company Limited
(MICO), Robert Bosch India Limited, and Bosch Rexroth India Limited
The Bosch Group employs a total
of some 14,000 associates in India including Kalyani Brakes. In
2004, its Indian operations generated sales of 548 million euros.
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 India,
including those in Kalyani Brakes.
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, Germany, a fortune 500 company. KBX is engaged in manufacturing of hydraulic brakes and air brakes for two wheeler market, passenger cars, light commercial
vehicles and SUV's. Kalyani Brakes caters to the leading Indian
and International vehicle manufacturers.
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, India Prisons Service,
Interpol, etc.
1] INFORMATION ON
DESIGNATED PARTY
No 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.46.32 |
|
UK Pound |
1 |
Rs.83.57 |
|
Euro |
1 |
Rs.65.90 |
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 |
|