German automotive major Bosch Group will invest Rs2,200 crore over the next two years in India to expand its operations.
Bosch Group’s sales in India stood at Rs9,270 crore in 2010, which are likely to grow by 20% in 2011 to Rs11,000 crore.
Its chairman Bernd Bohr said the money would be used for capacity augmentation, diversification and new technology development. “A substantial portion of this amount will go into further expanding the company’s local activities,” the company said in a statement.
Bohr said that despite uncertainties due to global political and economic developments, the Indian economy has continued to develop strongly and is expected to see steady growth. This year alone, he said, automotive production in India is set to grow about 11% while the number of vehicles produced globally is expected to increase by 3-5% in 2012.
“In the backdrop of such developments, Bosch would like to contribute and be part of the Indian growth story,” said Bohr. Bosch is currently building a new electrical drives plant in Chennai, which will begin operations this year and expansion plans are underway at the Nashik, Jaipur and Ahmedabad facilities.
“Bosch experts in India are set to assume worldwide responsibility in the area of software engineering support for electronic control units,” the company said.