Bosch eyes 40% of power tools market

To open 30 Bosch System Specialist showrooms in south.

Portable electric power tools and accessories maker Bosch Power Tools, a part of Germany’s Bosch Group, is aiming to garner around 40 per cent of the Indian power tool market in the next couple of years, according to Vijay Pandey, vice-president (power tools division), Bosch India.

“Our India story remains good (though the recession had an impact on the power tools markets globally) as our economy is growing by 7-8 per cent while the power tools market is growing at around 10 per cent. If the Indian economy grows 8-9 per cent, we will reach that 40 per cent much faster,” he told Business Standard.

Bosch, which presently commands one-third of the close to Rs 850-crore Indian power tools market, had been growing at a compounded annual growth rate (CAGR) of 25 per cent for the last three years on the back of the 100 new tools that it launched every year, he added.

The company on Monday launched its first Bosch System Specialist (BSS) retail concept showroom in Hyderabad, taking its BSS retail network in the country to 41. Spread over an area of approximately 450 sq ft, the outlet offers a complete range of Bosch professional and do-it-yourself power tools and accessories.

“Our idea is to open 10-15 BSS showrooms a year to take the tally to 100 outlets by 2015 of which 25 to 30 will be in south India,” Pandey said, adding Bosch and its authorised dealers together would be investing anywhere between Rs 10 lakh and Rs 15 lakh (excluding land cost) in each outlet. Bosch Power Tools is aiming to sell about 900,000 units in India this year, as against the 600,000 units last year. Around 30 per cent of the tools are manufactured at its Bangalore plant, while the rest are imported from Bosch’s factories abroad.

“We are scaling up production at our Bangalore plant,” Pandey said, refusing to disclose any absolute numbers in terms of the capacity and investments.

“It’s Bosch’s philosophy to invest back 8-10 per cent of its revenues into research and development and manufacturing,” he said.