Industry Profile: Indian automobile industry is one of the largest and most competitive in the world. In FY 15-16 production total was 23.96 million vehicles. The sector accounts for 7.1 percent of the GDP of India, out of which 81% is the Two-wheeler market. Indian automotive aftermarket is estimated to grow at around 10-15 percent to reach US$ 16.5 billion by 2021 from around US$ 7 billion in 2016. It has the potential to generate up to US$ 300 billion in annual revenue by 2026, creates 65 million additional jobs, and contribute over 12 percent to India’s Gross Domestic Product. Maruti in Car and Hero Moto Corp is the leader in the Two-wheeler market. Passenger Vehicle holding 13% market. Maruti Suzuki expects the Indian passenger car market to reach four million units by 2020, up from 1.97 million units in 2014-15. Mr. Young Key Koo, Managing Director, Hyundai Motor India Ltd, has stated that India is an important market for the company in terms of volumes and as a hub of small products for exports to 92 countries. Like many companies trying to increase revenue, the rural market is significant for further growth. India is also one of the leading exporters of automobiles and has strong export growth expectations for the near future. In April-March 2016, overall automobile exports grew by 1.91 percent. PV, Commercial Vehicles (CV), and Two Wheelers (2W) registered a growth of 5.24 percent, 16.97 percent, and 0.97 percent, respectively, in April-March 2016 over April-March 2015. The industry has attracted Foreign Direct Investment (FDI) worth US$ 15.79 billion from April 2000 to September 2016, according to data released by the Department of Industrial Policy and Promotion (DIPP). Several automobile manufacturers, from global majors such as Audi to Indian companies such as Maruti Suzuki and Mahindra & Mahindra, are exploring the possibilities of introducing driverless self-driven cars to India.
Company Profile: Founded in 1951, it is the flagship company of the Bosch group. Headquarter in Bangalore of Bosch, the Indian subsidiary of a foreign company, is India’s leading supplier of technology and services, mainly in automotive and industrial technology, consumer goods, and building technology. India is one of the important markets as the company has the most prominent development center, outside Germany, for end-to-end engineering and technology solutions. The company keeps manufacturing facilities in many cities in India. Bangalore, Naganathapura (near Bangalore), Nashik, Jaipur, and Goa. Its Automotive Technology division includes Diesel and Gasoline Fuel Injection Systems, Car Multimedia Systems, Auto Electricals and Accessories, Starters and Generators, and Energy and Body Systems. Its Industrial Technology division includes Packaging Machines, Special Purpose Machines, Solar Energy, and its consumer goods, and the building Technology division provides power tools and security systems.
Shareholding Pattern: BSE Data
Financials and Ratios : [table id=74 /]
Future Prospects: company’s growth was not good in recent times. Demonetisation and GST were terrible for the industry, and now the sector is coming out. As the company is dependent on the Automobile sector, the industry’s growth is essential for India as one of the leading sectors in employment generation. Management I am confident about achieving growth in FY 19. Fundamentals are excellent, so the company is a Portfolio company even at the current level.
