Business

Brose India eyes tripling revenue

Automotive supplier Brose Group of Germany, with global revenues of €6.2 billion, has drawn up a 5- year growth plan to increase the revenue of its Indian unit three-fold from €27 million in FY20 to €80 million in FY25. It has also announced plans to invest an additional €17 million in India by FY25 in various initiatives, including capacity expansion and capability enhancement.

The Indian unit, Brose India Automotive Systems, which currently produces and supplies window regulators, side door latches, door modules and seat height adjusters to European and global car manufacturers having operations in India and global car manufacturers, has decided to broad-base its product offerings to tap into large Original Equipment Manufacturers (OEMs) in India like Maruti, Hyundai, Tata Motors and Mahindra.

Besides Brose is gearing up to capitalise on the electrification drive in India to supply electric motors and inverters to electric two-wheelers and e-rickshaws which are in demand in India currently.

“Currently India’s automobile market may not be so good, but it will recover. India provides big opportunity for us and we want to expand every year. We are investing in technology to come out with amazing products and our growth plan includes supplying to large OEMs in India,” said Ulrich Schrickel, CEO, Brose Group.

“We are entering into new areas of electric two wheelers and e-rickshaws. We will be supplying electric motors and inverters,” he said.

The Indian unit which is growing 20% year-on-year for last 4 years is eyeing further growth, he added.

On Wednesday the company officially opened its new campus in Hinjewadi, Pune integrating a new headquarters building, development and IT centres as well as the manufacturing plant on 1,75,000 square feet area. Brose has invested €3.2 million in this facility.

“This investment is not only a commitment to the Indian market; it is also a strategic move for the Brose Group. To improve competitiveness and efficiency we are further expanding the global engineering and IT service center in Pune and shortening the paths between development and manufacturing. Speed is a success factor for our company. The market trends in the global automotive business rely on extremely fast and consequent results,” Mr. Schrickel said.

The company’s goal is to enhance more of its products with sensor technology and software solutions. Thus, it is hiring more experts in digital development, embedded software and IT in Pune.

“They will work on cost effective products for the domestic market and support other Brose locations in these areas,” said Vasanth Kamath, president, Brose India.

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Printable version | Apr 5, 2020 4:32:13 AM | https://www.thehindu.com/business/brose-india-eyes-tripling-revenue/article30925218.ece

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