A high level of IT competence and an exceptional innovation culture: India’s start-up scene is on the rise. According to a recent study, however, only around ten percent of all start-ups established in the country develop into a profitable enterprise. Bosch is working to change this by establishing synergies and expanding the activities of its internal “D.N.A.” (“Discover, Nurture, Accelerate”) – start-up program in India. The provider of technology and services is offering its expertise to Indian start-ups to help them achieve sustainable development, particularly in the early stages of their business. Its partnership with the nascent companies is part of Bosch’s strategy to respond early to new trends and in this way gain access to disruptive industry developments. “By combining the creativity of start-ups with the experience of Bosch, significant value can be unlocked,” said Manohar Esarapu, the head of Bosch India’s D.N.A. corporate venture program.
Out of 450 applications submitted in the first round, 13 teams were selected on the strength of their idea and potential for growth. The start-ups are active in a diverse range of fields including mobility, aerospace, healthcare, and agriculture. For example, one start-up provides customizable home automation solutions while another harnesses the power of virtual reality to save around 90 percent of the costs involved in life-size prototyping. In the future, Bosch India’s accelerator program will increasingly look to collaborate with start-ups who are working in areas such as the internet of things (IoT), deep learning, analytics, cloud computing, virtual reality, and blockchain technology. Over the course of 18 weeks, the start-ups receive intensive support and advice on their technology and business plans from experienced Bosch mentors.
Bosch invests further in localization
Along with partnering with local start-ups, Bosch is also strengthening its successful localization strategy in the country through investments. Over the past five years, Bosch invested a total of 660 million euros in its Indian locations, including 144 million euros in 2016. The lion’s share of this investment is going toward expanding the company’s Adugodi location in the southern city of Bangalore into a high-tech R&D center. In nearby Bidadi, Bosch’s Mobility Solutions plant recently entered the second phase of its extension. The work is expected to be completed by mid-2019 and will create space for an additional 2,500 associates. “In recent years, Bosch has maintained a high level of investment in India, and the current year will see a continuation of this strategy,” said Soumitra Bhattacharya, the president of Bosch India and managing director of Bosch Limited. The country’s political stability is a key factor here, he said. The government is placing a particular focus on topics including the introduction of a goods and services tax (GST) and smart city projects. Both of these will have a positive effect on the development of the local market next year as well, he continued.
Healthy growth in the Indian market
In 2016, the Bosch Group recorded total sales of 1.8 billion euros in India – an increase of 5.7 percent. The company’s publicly-listed Indian subsidiary Bosch Limited was responsible for the majority of this, generating sales of 1.5 billion euros. “Bosch’s business grew much faster than the domestic automotive market, both in the current quarter and over the last year as a whole,” said Bhattacharya. The Mobility Solutions business sector grew by 8.6 percent, outperforming the domestic automotive market, which only grew by 7 percent in the same period. Other Bosch divisions also developed very well: growth was particularly strong in the company’s security systems, packaging machinery, and energy and building solutions businesses.
Bosch has been active in India since 1922. Today, the company is present with all of its four business units and 15 manufacturing locations. With around 18,000 highly qualified engineers, India is home to Bosch’s largest R&D center outside of Germany. In total, Bosch currently employs nearly 32,000 associates in the country.
