Bosch sees signs of growth in Russia and CIS region

07 Jun 2017

Annual press conference 2017 in Moscow

  • Regional sales in 2016 exceeded 1.2 billion euros
  • Mobility Solutions plant in Samara has implemented Industry 4.0 technologies
  • Export of more than half of automotive components manufactured in Russia

Moscow – Bosch, a leading global provider of technology and services, registered sales of 1.2 billion euros (92 billion rubles) in the countries of the Commonwealth of Independent States (CIS), Ukraine and Georgia in the fiscal year 2016. This is a slight increase compared to the previous year in euros and an increase of eleven percent in rubles. “These are the first signs of what could be a new period of growth in Russia and the CIS states. The region is of strategic importance for Bosch and we firmly believe in the market’s long-term prospects,” said Uwe Raschke, member of the board of management of Robert Bosch GmbH, at the company’s annual press conference in Moscow.

This year, the company will continue with its strategy of strengthening local activities in the CIS region. “We are confident, that the overall situation will improve further. That’s why we have never stopped developing our activities in the region, investing in the local manufacturing, but also increasing the exports of our products and strengthening the collaboration with local partners," explained Hansjürgen Overstolz, representative of the Bosch Group in Russia, Ukraine, Belarus, Central Asia, Mongolia and the Caucasus. The focus of the company in the region remains Russia. The sales in the country increased 4.3 percent compared to 2015 and reached 1.05 billion euros. As of the end of 2016, the number of associates in the region reached more than 4,200 (including associates from non-consolidated entities) of which more than 3,700 work in Russia. The staff of Bosch plant in Samara has doubled since 2015.

The volume of investments in the region in 2016 reached 25 million euros, focusing on the modernization of its production facilities. In the past five years, the Bosch Group has invested more than 250 million euros.

Successful development in all four business sectors

All four of Bosch’s business sectors have developed well in the CIS region in 2016. The Mobility Solutions sector performed better than the market, also in comparison to 2015. The automotive components plant in Samara, belonging to the Mobility Solutions business sector, exports more than 50 percent of its products to Romania and Spain. The company has successfully been implementing Industry 4.0 solutions at this site: all manufacturing lines for ABS/ESPs are equipped with the Promaster software which collects and compares daily manufacturing data in eleven locations all over the world, allowing for a 20 percent decrease in downtime. The plant in Engels plays a leading role in the Bosch’s international development and manufacturing network for spark plugs. The network of Bosch Car Service numbered 395 Bosch Car Service stations and 66 Bosch Diesel Service/Bosch Diesel Center stations.

The Consumer Goods business sector is continuously focusing on localization: Over 90 percent of Bosch washing machines and fridges for the Russian market are manufactured locally. At the same time, the volume of exported household appliances also continuously grows. BSH Household Appliances ranked third in terms of the sales volume in Russia and sold approximately four million units of home appliances. In Russia, the company has launched the world's first online-store selling exclusive home appliances under the brand of Neff and plans to open stores for further BSH brands.

The Industrial Technology business sector has again developed positively, especially with regard to solutions for automation of manufacturing processes. The engineers of Bosch Rexroth have implemented smart solutions to control the robotic spot welding and manual welding systems on the conveyor line of Volkswagen Tiguan Kaluga (Tiguan NF project). The successful implementation of this project allows to fully localize the production assembly of the next generation model of Tiguan in Kaluga. The Bosch Group is one of the world's leading manufacturers of technological and packaging solutions for pharmaceutical industry, food industry, confectionery manufacturing, and for certain segments of the beverage industry, with packaging equipment and consumables being actively supplied to the markets of Russia, Belarus, and Kazakhstan.

The Energy and Building Technology business sector is engaged in preparing the sports facilities for big events. In September 2016, the company has finished deployment of Bosch solutions for the new stadium of the Football Club "Krasnodar" with an estimated capacity of some 34,300 seats. Its technical capabilities allow to host the biggest football matches. The project used Bosch equipment, which has been established and proven in the security systems market: more than 350 controllers, 1,200 readers, 1,300 security panels, detectors and signaling devices, including more than 1,000 video surveillance cameras with a total storage volume of 864 TB (more than 200,000 Full HD movies or 10,000,000 pictures can be stored there), fire alarm system, as well as notification and music broadcasting systems.

The radiators plant in Engels has reached its planned manufacturing capacity and the sales of steel panel-type radiators increased four times. The successful market launch of the new model Buderus GB172i in the Titanium line ensured the growing sales of wall-mounted condensation boilers. The company has been actively collaborating with local manufacturers to develop advanced solutions tailored to the trends of the local market such as local manufacturers of steel and tubes, insulation materials, rubber and plastic parts.

Russia: development of production and growth of export

At the plant in Samara, the company has launched manufacturing lines for the production of hydraulic steering systems and steering systems for commercial vehicles (HPS, Servocom). The Automotive plant in Engels also increased its production volume of spark plugs.

In 2016, the Engels Thermotechnology plant started manufacturing industrial-grade heating boilers with a rated capacity from 7,700 to 12,600kW. In 2017, the company intends to implement the next phase of renovation, which would allow to build boilers with a capacity of up to 19,200kW.

The Bosch Call Center in Kazan continues to perform at a high level. In 2016, the specialists of the center held approximately 860,000 telephone consultations and solved around 206,000 technical questions. The number of presales consultations reached 30,020.

Ukraine: Positive development of Energy and Building Technology sector

Stabilization of the financial sector, growth of GDP and orientation towards the new exports markets have driven growth of Bosch sales significantly in Ukraine. Especially the Energy and Building Technology sector developed well. High energy prices and large infrastructure projects aimed at renovating heat supply facilities have increased the local market share of Bosch in the Thermotechnology sector. The Security Systems division has successfully implemented several official building projects and significantly increased its market share. This development was mainly triggered by the modernization of energy production facilities like nuclear power and oil refinery plants, as well as the renovation of heritage-listed buildings and the active participation in projects in the public sector and the development of Smart City initiatives.

The Automotive Aftermarket business division also increased its sales double digit. The plant of the company's subsidiary, Holger Christiansen, in Krakovets, Ukraine, restores up to 250,000 automotive starters per year, making a big contribution to saving the environment, and exports them to the markets of Europe, US and Canada.

Bosch Rexroth participated in several projects in the field of industrial hydraulics, specifically, updated the hydraulic actuator of the blast furnace systems and hydraulic systems for welding equipment.

Besides, the growth in industrial and civil construction has increased demand for

Power Tools and allowed the company to successfully implement the Sunrise project, aimed at selling professional tools in retail chains.

Enhancing professional training in Belarus

In Belarus, Bosch has opened a training center for Bosch Thermotechnik as part of the Institution of advanced training for the workers of the gas industry. The training center offers courses for the employees of the company's service centers; such trainings are carried out three to four times a month. At all other times, the institute offers trainings for the workers of the gas industry that are servicing any gas equipment, from a boiler to a gas-filling station. The Bosch Power Tools business division became a partner for the international movement Worldskills Belarus 2016 which aims to enhance the status of professional education in the woodworking industry. As of the end of 2016, Bosch operates 30 Bosch Auto Service workshops and two Bosch Diesel Service/Bosch Diesel Center workshops in the Republic of Belarus.

Kazakhstan: Increased sales of thermotechnology and power tools

In 2016, the Kazakhstan market for heating equipment developed further towards energy efficiency, and one of the options is the concept of separate apartment heating. In Shymkent, Bosch Thermotechnik participated in a large project of commercial boiler installation in apartments. Besides that, in 2017 the company performed the first shipment of Bosch WNS10-1.25-QY boiler from its plant in Wuhan (China) to Kazakhstan for Caspian Beverage. It is worth noting a significant increase in sales of the Bosch Power Tools business unit. The share of e-commerce sales increased by 250 percent and reached three percent in the overall sales volume.

Trans-Caucasian region: significant sales growth

The company's sales in Georgia is growing after the launch of the local warehouse of finished products in January 2015. All the towns with population of more than 30 000 people have been covered by the network of Bosch Power Tools.

Bosch Group: Strategy and business outlook for 2017

For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between three and five percent. And despite still heavy upfront investments in safeguarding the company’s future, result is set to rise. “Business success today gives us the leeway to shape tomorrow’s world,” said Dr. Volkmar Denner, the chairman of the Bosch board of management. “As an innovation leader, we are shaping and driving transformation,” Denner added. The focal points of this transformation are changes in the mobility sphere and IoT connectivity. By 2020, all Bosch’s new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing 300 million euros in its own center for artificial intelligence.


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