Most of large economies are on verge of recession, India safe: President of Bosch Group in India

Says there is a lot of resilience in Indian economy

Guruprasad-Mudlapur Guruprasad Mudlapur

Most of the large economies in the world are on the verge of recession as the inflation is very high, especially in the Western world, but India is not at risk, said Guruprasad Mudlapur, managing director, Bosch Limited, and president of Bosch Group in India.

He observed that while global economic trends could have some impact on India, this will be limited as there is a lot of resilience in the Indian market due to the multiple initiatives initiated by the government to bring inflation under control.

In India, very strong digitisation has happened and tax collections have jumped, he said, adding that Indian economy is a largely domestic consumption economy that has in turn brought in a lot of positivity.

Mudlapur pointed out that many economists have pegged India's growth between 6 to 7 per cent which is a very positive sign. Bosch is looking forward to driving on this growth in the Indian economy, he said.

“We are optimistic about the future as we navigate a rapidly changing global market with positive trends in the Indian automotive industry which is witnessing a shift towards premium vehicles and cleaner fuel options and electrification. Hence, embracing change is crucial and we are ready to leverage technological advances to cater to the evolving consumer preferences. With India emerging as a promising market and our focus on green hydrogen and innovative automotive offerings, Bosch is well-positioned for growth and success in the year ahead as rising income levels and an increased focus on value-driven factors are driving growth in the categories of scooters, premium motorcycles, and SUVs,” said Mudlapur.

He further said the outlook for the upcoming fiscal year looks positive as Bosch is poised to embrace the transformative changes. Cleaner fuels, green hydrogen and electrification take centre stage in our commitment to a climate-neutral future, he said and added that Bosch India will showcase the BS6 stage 2 hydrogen engine truck, by early 2024. “It is also exemplified by the launch of our first hydrogen-powered demonstrator vehicle in India in June 2023 which comes after the announcement about the launch of the pilot Hydrogen Engine Testing infrastructure in Bengaluru later last year.”

He added that as the global market shows signs of recovery, Bosch approaches it with cautious optimism amidst interest rate fluctuations and affordability concerns. “We are ready to seize opportunities, particularly in India's thriving infrastructure sector. Over the next decade, India presents immense growth potential in the areas of innovation, technology, quality, and manufacturing depth. We are committed to investing in R&D to develop solutions that drive the company towards a greener and more sustainable future.”

Mudlapur said there has been a lot of improvement in the supply chain for semiconductors and the situation has eased quite a bit though it is not completely out of the woods.

Q1 results announced

Bosch Limited announced its Q1 results for FY2023-24. It posted its total revenue from operations of Rs 4,158 crore (466 million euros) an increase of 17.3 percent over the same quarter last year. The revenue from operations in Q1 has been higher compared to the previous quarter, mainly due to increased sales of Exhaust Gas Temperature (EGT) components in passenger cars and commercial vehicle segment. The Profit Before Tax (PBT) stood at Rs 533 crore (60 million euros) which is 12.8 per cent of total revenue from operations, an increase of 21.7 per cent over the same quarter of previous year. The Profit After Tax (PAT) stood at Rs 409 crore (46 million euros) which is 9.8 per cent of revenue from operations. 

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