Bosch-Siemens Plans 100% Domestic Appliances Unit

Europes second largest domestic appliances firm Bosch- Siemens Hausgerate GmbH, which ranks fifth in the world, has applied to the Foreign Investment Promotion Board (FIPB) to set up a 100 per cent subsidiary to manufacture and trade in consumer durables in the country.

The subsidiary is slated to initially invest DM 50 million (Rs 105 crore) to manufacture and market washing machines, dishwashers and refrigerators. In the second phase, the company will introduce its entire range of products which include fully automatic washers, dryers, dishwashers and cooking ovens amongst others.

The German company proposes to kickoff its activities in India with the import and sale of products by September 1997, the aim being to set up a complete manufacturing base by end of 1999.

 

The Bosch-Siemens application sets to rest speculations, which have been rife for over a year now, that the German appliances company was planning to tie up with its first Indian technical partner, the Bijon Nag controlled IFB of Calcutta.

Bosch had, on its own, earlier provided technology to the IFB (which used to sell its machines under the IFB-Bosch label) to manufacture washing machines but the technical tie up was not renewed after differences cropped up between the two companies. Bosch has, however, renewed talks with the IFB and is believed to have held detailed parleys, spanning some months, on its acquiring substantial equity in the company.

This development follows an earlier move by Bosch-Siemens to forge a joint venture with the Thapar controlled Crompton Greaves. A memorandum of understanding was also signed between the two companies. However, the two decided to part ways after a feasibility report on the potential of the Indian market.