Robert Bosch Sdn Bhd Makes A Comeback For 2010

Bosch Malaysia returns to growth and strengthens investment in 2010

In fiscal year 2009, the Bosch Group’s sales were at 38.2 billion euros worldwide, a 15% drop from 2008. With the economic recovery in 2010, the company is now making up for much of the loss of sales in 2009 and returning to positive results in 2010. In the first quarter of this year, sales were up about 25%. All in all, sales in the current fiscal year are expected to grow by more than 10%, to 42 billion euros.

For the first time, Asia Pacific contributed 20 % of the Group’s revenue in 2009, making it the second most important region for sales after Europe. Asia Pacific’s share is expected to climb to 30% by 2015.

Bosch Malaysia contributed sales revenues of RM 396 million (95 million euro) in 2009, down by 21% compared to 2008, but currently enjoying a strong 40% sales growth in the first half of this year. Including internal sales, the revenue is RM 1,118 million (268 million euro) in 2009.

“2009 was undoubtedly a very difficult year in the region and especially in Malaysia. Sales dropped in 2009, but the recovery has been fast so far. In Malaysia, Bosch is employing some 2,500 associates, which comprises more than 60% of all associates in Southeast Asia, demonstrating our strong commitment to Malaysia,” said Mr Cem Peksaglam, President and Managing Director of Robert Bosch (SEA) Pte Ltd, who is also Managing Director of Robert Bosch Sdn Bhd in Petaling Jaya.

Mr Peksaglam added, “We are looking to strengthen our presence further through expanding our production base, especially for future oriented innovative products, the establishment of a R&D company, as well as an increase of our market shares in our business fields in Malaysia.”

Ramp up of production, setup of new R&D company and investment into energy-efficient facilities in Penang
With the increased demand for vehicles, especially in Asia Pacific, automotive technology continues to make the greatest contribution to the Bosch Group’s growth.

In Malaysia and the region, Bosch is aiming to establish a strong presence in the car infotainment segment with a wide range of next generation multimedia systems customized for different car segments, ranging from compact and mid-size vehicles, to the luxury class.

These all-in-one car multimedia devices will be complete with applications such as dual view touch screen display, Bluetooth connectivity interfaces to iPhone and iPOD, as well as MP3, DVD, CD player support, TV, GPS navigation and an “eco mode” that offers fuel-efficient route guidance.

Bosch Car Multimedia division’s plant in Penang will be producing these next generation devices. By 2013, 70% of the plant’s production will primarily be car infotainment systems. Bosch is the first to manufacture these devices in Malaysia.

Mr Peksaglam, who said that the infotainment systems are targeted at carmakers, elaborated, “With the thriving global car market, Malaysia will be our manufacturing base in the region to produce our latest car multimedia systems for customers worldwide”.

To meet the growing demand for car infotainment systems in tandem with the recovery of the international automotive market, Bosch is setting up a new research and development company in Penang. Established in August this year, the new R&D company will focus on the development of navigation, radio and electronic components. The company will initially deploy 63 of its research engineers into this new setup. A progressive increase is expected to support growth.

As part of Bosch’s commitment to environmental protection in Malaysia, Bosch is the first to have a 101 kilowatt-peak Photovoltaic (PV) installation on the rooftop of its manufacturing facilities in Penang. A total of 130 megawatt-hours of renewable energy can be generated yearly. The panels will also be used to study the sensitivity and performance level of solar cells in tropical climate. Mr Peksaglam said that this project aligns with Bosch’s business philosophy in demonstrating social and environmental responsibility in its business operations.

He added that Bosch is also moving towards attaining green building status for its main administration building in Penang, along with the deployment of other forms of environmentally-friendly and energy-efficient measures throughout its entire manufacturing facilities, such as the use of modern LED lightings.

These projects contribute to a smaller carbon footprint of Bosch in Malaysia with a total reduction of 450 tonnes of carbon dioxide emission per year.

Growth and focus in 2010
All business divisions in Malaysia have shown promising performance for the first six months of 2010. Bosch’s Drive and Control technology division, Bosch Rexroth, registered a 29% growth, compared to the same period of the previous year. Bosch Rexroth is currently focusing on progressive growth in hydraulics through end user strategies.

The Automotive Aftermarket business division saw a double digit spike for the first half of 2010, compared to the same period the year before. 2010 sees Bosch Automotive Aftermarket taking on a quality upgrade of its network of Bosch Car Service and Bosch Diesel Network service centers to even better attend to customers in the future.

Security Systems similarly achieved a double digit growth for the first half of 2010, versus the previous year. Bosch Security Systems benefitted from the finalizing of projects from the 9^th Malaysian Plan. It also saw an increase in its market share of public address systems, due to a combination of innovative product features and competitive pricing. In 2010, Bosch Security Systems will focus on replacement markets in the oil and gas sector, as well as on small and medium enterprises to offer competitive product pricing.

The Power Tools division is targeting double digit sales increase in 2010. This year, Bosch Power Tools maintains focus on users and will continue to introduce innovative products, especially for cordless and measuring tools.