Bosch to invest Rs 1,500 crore in Karnataka

Bengaluru: Bosch, a leading supplier of technology and services in the areas of automotive, industrial technology, and consumer goods, will invest Rs 1,500 crore ($240 million) over the next seven years in Bangalore, in expanding its manufacturing and research and development capabilities.

The 53-billion euro German auto component manufacturer is relocating its six-decade-old manufacturing facility from Adugodi, located in the heart of the city, to Bidadi, which is approximately 32 km from Bangalore city.

The existing Bosch premises at Adugodi would continue to house the company's India head office and the space available on account of relocation will be used for expansion of Bosch R&D Centre, and Robert Bosch Engineering & Business Solutions.

"This move to relocate underlines our commitment to India and especially to the state of Karnataka. The developing industrial area in Bidadi will offer larger space and better infrastructure support for our future expansion," said Steffen Berns, MD, Bosch Ltd.

He added that though the current economic situation was tough, the relocation would cater to the growing business needs of the Indian market in the long term. The company has started work on its new facility, part of which will become operational in the next two years.

"In spite of the economic downturn we continue our projects in Bidadi and Adugodi and Bosch will invest Rs 1,500 crore in the next seven years in these two projects," said Soumitra Bhattacharya, joint MD, Bosch Ltd.

The relocation will happen in a phased manner with the company investing Rs 250 crore in setting up phase I of the Bidadi plant, which will be operational in the third quarter of fiscal 2015. Around 850 employees from the Adugodi plant will be relocated to the new facility.

In all around 4,000 employees will be part of the relocation exercise, which will be completed post 2017.

The new facility will initially manufacture several components of diesel fuel injection systems such as common rail pumps, common rail and glow plugs.

The Bosch Group operates in India through six companies, has a turnover of Rs 12,900 crore and employs 26,000 people. Of that 16,000 people are based in Karnataka.