MICO to increase supplies to Bosch

Our Corporate Bureau
17 March 2005

New Delhi: Motor Industries Company (MICO), part of the euro 40 billion automotive technology provider Bosch Group, expects to gain more orders from its parent company Bosch, with the German firm looking to source more products from countries with lower production costs.

MICO is looking to increase sales of products such as single cylinder pumps to other Bosch subsidiaries by 10-15 per cent in the next five years. MICO exported about Rs340-crore worth of components to Bosch alone last year.

In 2004, MICO's export earnings stood at around Rs400 crore with about 85 per cent of this coming from outsourcing of components to Bosch, company officials said.

In recent months Bosch has relocated manufacturing of certain components to India from other locations, including Brazil, Austria and the Czech Republic.

Meanwhile, the company today also said that it was bullish about growth in the domestic market in view of emerging opportunities arising from implementation of new vehicular emission norms. The company will soon start production of various components for the common rail system (CRS) at its plants in Bangalore and Nashik.

Last year, the company had announced a Rs1,000-crore investment in India to be made over the next three years. Of this, about Rs550 crore would go for the introduction of common rail diesel injection systems.