Bosch investing 220 million Euros to expand its AI and IoT capability in India

Dr Volkmar Denner unveils Bosch IoT strategy in India

The Bosch Group will invest 220 million euros over the next three years in India. “To meet the rising demand in the Indian market with tailored solutions and expand India’s strong role in our global network, we will invest 17,000 million rupees (220 million euros) over the next three years”, announced Dr Volkmar Denner, the chairman of the board of management of the Bosch Group. A major share of this will be used to expand Bosch’s smart campus in Adugodi and modernize manufacturing facilities in the country.

Bosch has in India the largest development center outside Germany, for end to end engineering and technology solutions.

IoT strategy in India

“Here in India, the transformation of Bosch into a leading IoT company is especially evident. We have been investing heavily to drive this forward. Our Adugodi location is being revamped from a manufacturing facility into a technology hub,” said Denner.

Volkmar Denner, CEO of Robert Bosch GmbH

“Over the past three years, we have invested more than 370 crores (46.2 million euros) to create this smart campus, which is home to 3650 of our 18,000 engineers in India. Additional investments of 600 crores (75 million euros) are planned for the further expansion of Adugodi,” he added.

The company has recently added new teams here in India to drive forward the development of solutions for the internet of things which are tailored to local needs.

“In this way, Bosch is contributing to transforming India. With solutions for the factories and cities of future, Bosch is supporting the Indian government’s “Make in India” and “Smart Cities” initiatives,” he said. “Smart manufacturing, or what we call Industry 4.0, is also a key element of the “Make in India” initiative. Bosch industrial technology is making factories increasingly automated, connected, and agile, and thus better able to meet customer demands and expectations.”

“We possess all the relevant areas of expertise and offer a wide range of products and solutions for Industry 4.0,” said Dr Volkmar Denner.

Bosch has also partnered with the CII, the Confederation of Indian Industry’s Industry 4.0 Council, to create the “Smart Advanced Manufacturing and Rapid Transformation Hub” national action plan. This involves government support for small and medium enterprises as well as industrial bodies with smart manufacturing policies. “For our part, we will be demonstrating working Industry 4.0 solutions at our own plants,” said Denner.

Bosch’s Industry 4.0 Academy also offers top-down training to senior executives. To date, it has already trained more than 250 people. Now open to external participants as well, the Industry 4.0 Academy forms an integral part of the Bosch Production System philosophy which is based on the concept of “lean manufacturing.”

Bosch offers IoT solutions for smart homes, smart cities, connected mobility, and connected manufacturing with an expertise in sensor technology, software, and services, as well as its own IoT cloud.

“In terms of new business, last year we set up a state-of-the-art artificial intelligence center here in Bengaluru, and our newly established Connected Mobility Solutions division is active in India too, where it is helping to shape the mobility of the future.”

Connected Mobility Solutions drives growth in India

Bosch sees the rising demand for connected mobility as a field of growth in India. The company recently established a Connected Mobility Solutions division to develop and sell digital mobility services. “Connectivity will fundamentally change how we get from A to B, and in the process it will help to solve today’s traffic problems. We are using it to realize our vision of emissions-free, stress-free, and accident-free mobility,” said Volkmar Denner.

In India, the new business division will work to develop a global telematics platform that will be enabled and operated by local engineering talent. This platform will help Bosch to better serve its customer base in India with effective solutions designed for effective mobility. The key offerings will include vehicle sharing, ride sharing, and connectivity-based services for car drivers.

India one of the three locations of Bosch Center for Artificial Intelligence

Around 18,000 out of Bosch’s 31,000 employees in India work in research and development (R&D). India also plays a significant role when it comes to Artificial Intelligence (AI). At 125 locations across the globe, Bosch employs some 64,500 people in research and development.

“Most of the products in the near future will be linked to artificial intelligence. These products will either possess that intelligence themselves, or AI will play a key role in their development or manufacture,” said Denner.

In 2017, the company invested 300 million euros into its Bosch Center for Artificial intelligence (BCAI) across three continents — one of the main locations being in Bengaluru, India — next to centers in Sunnyvale, U.S. and Renningen, Germany. Additionally, Bosch in India has also partnered with IIT-Madras and set up a Robert Bosch Centre for Data Science and Artificial Intelligence at IIT- M with a fund of 4 crore per year for 5 years. It will set a precedent in the way big-data is used to improve our problem-solving capability in the industry.

Breakthrough in Diesel technology

Volkmar Denner sees improving the quality of life and contributing to eco- and climate-friendliness at the top of Bosch’s agenda: “Our ‘Invented for life’ ethos is our motivation for developing the best possible technologies for environmental protection. We want to help keep people mobile, while improving air quality.” To make low emissions traffic reality, the company is making heavy investments — both in making electromobility a market success and in enhancing the combustion engine. Both technologies benefit the demand of the Indian market. Bosch has now achieved a breakthrough in diesel technology: with their new diesel technology, Bosch engineers have succeeded in getting NOx emissions massively down. On average, test vehicles equipped with the enhanced technology already emit no more than 13 milligrams of NOx per kilometer during road tests according to the new European RDE standard. “There’s a future for diesel. It will remain integral to tomorrow’s mobility solutions,” the Bosch CEO said.

Soumitra Bhattacharya, Managing Director of Bosch Limited in India and Volkmar Denner, CEO of Robert Bosch GmbH

A powertrain mix for the Indian market

India plans to achieve BS-VI implementation from April 2020 and adopt electromobility solutions built for Indian conditions. Bosch believes that the ICE (Internal Combustion Engine) will continue to be the mainstream solution for freight and commercial vehicles. However, a key role here will be played by Bosch India’s electrification initiatives, to address the transformation in urban mobility. Keeping in mind the country’s climate change targets, Bosch views the co-existence of fossil fuel engines and electrification with hybridization as an interim solution.

Hybrid technology will be a vital contributor towards the electrification goal in India due to the nation’s unique stop-start driving patterns and road congestion. In light of that, fleet operators and smaller vehicles are poised to adopt electrification as soon as feasible options are available in the market. Bosch experts believe that the use of synthetic fuels as a scheduled supplement to electrification will play a vital role to reduce CO2 emission.

Strong Signs of recovery in the Indian market

The Bosch Group sees strong signs of recovery in the Indian market and forecasts a positive development over the mid-term: “The Indian economy is on the rise again and holds tremendous potential”, said Dr Volkmar Denner, the chairman of the board of management of the Bosch Group during his visit to India.

In 2017, the company posted strong double-digit growth as sales went up of 15.4 percent to 2.2 billion euros. With a projected 7.7 percent GDP-growth for the Indian economy in 2018 and a similar level for the coming years, Bosch expects to continue with its momentum.

Main contributors are the development of the local automotive industry, which holds opportunities for Diesel technology, electromobility and connected mobility as well as the government initiatives for connected manufacturing and connected cities.

Bosch Group in India generated a consolidated revenue of about ₨.19,204 crores*(2.61 billion euros) in 2017 of which ₨. 13,790 crores*(1.88 billion euros) is from third parties. Bosch Limited, the flagship company of the Bosch Group in India, earned a revenue of over ₨. 10,842 crores (1.47 billion euros) in 2017.

The Bosch Group operates in India through twelve companies — Bosch Limited, Bosch Chassis Systems India Private Limited, Bosch Rexroth India Private Limited, Robert Bosch Engineering and Business Solutions Private Limited, Bosch Automotive Electronics India Private Limited, Bosch Electrical Drives India Private Limited, BSH Home Appliances Private Limited, ETAS Automotive India Private Limited, Robert Bosch Automotive Steering India Private Limited, Automobilty Services and Solutions Private Limited, New Tech Filters India Private Limited and Mivin Engineering Technologies Private Limited.

Bosch was set up in Stuttgart in 1886 by Robert Bosch (1861–1942) as “Workshop for Precision Mechanics and Electrical Engineering.”

The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiary and regional companies in 60 countries. Including sales and service partners, Bosch’s global manufacturing, engineering, and sales network covers nearly every country in the world.

Bosch set-up its manufacturing operation in India in 1951, which has grown over the years to include 18 manufacturing sites, and seven development and application centers.

Special Ownership Structure

Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

This special ownership structure of Robert Bosch GmbH ensures the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront investments