Bosch to tap rural markets

Will piggy-back on Canara Bank's rural network with 'Bosch Vaahan'

Bosch Power Tools plans to piggy ride with Canara Bank's rural network to tap the market for its power tools.

Addressing a press conference here on Wednesday, Navin Paul, business head, power tools division, said artisans in the interiors of India have the infrastructure and financial support to earn a living from their skills.

"It is to these artists that we are reaching out through 'Bosch Vaahan' yatra with the support of Canara Bank," he added.

The company launched 'Bosch Vaahan', an initiative to mobilise the self-employed artisans with the power to procure tools through loans, which until now have been beyond their reach.

"A mobile van will travel to the interior parts of India and will be equipped with power tools ranging from the cordless tools, woodworking tools, construction tools to the metalworking tools and will cater to the needs of plumbers, electricians and self employed artisans," said Paul.

The power tool industry is valued over $20 billion globally and its estimated worth including accessories is around Rs 450 crore in India.

The market is expected to cross the Rs 500 crore mark with a growth of 12 per cent by 2006, driven by accelerating economic activity and the rising demand in this segment.

In 2005, the Bosch Power Tools division achieved a marked turnover of Rs 155 crore with a growth of 30 per cent over the previous year.

The company in the first quarter of FY 2006, has sold Rs 55 crore worth of power tools and has set a target of Rs 188 to Rs 200 crore for the whole year.

With tremendous growth coming from tier II cities, the company was able to convert manual traditional artisans to use power tools and also is backed by boom in construction sector, metal and wood carving industries, said Paul.

Speaking on the occasion, M B N Rao, chairman and managing director, Canara Bank said "We have planned to support 10,000 to 15,000 rural artisans comprising of carpenters, electricians, plumbers and auto technicians. Each beneficiary will be provided with a soft loan upto Rs 1 lakh towards tools and working capital at a nominal interest payable in 36 months."

Last year, the bank was able to provide loans amounting to Rs 6.36 crore and helped 2,044 rural artisans. So far bank has trained 1.75 lakh people of which the success rate is 66 per cent, he added.

In the first phase 'Bosch Vaahan' yatra, it would travel to 11 districts in Karnataka and 19 districts in Andhra Pradesh. Bosch plans to take this project starting from the south of India to Gujarat and Maharashtra in the second phase.