Bosch Group Debriefing on the Company’s Global Goals
On September 27, Bosch Group representatives held a press briefing at Radisson BLU Iveria hotel in Tbilisi. Bosch Group, which is one of the leading suppliers of technology and services worldwide, was presented by Hansjuergen Overstolz, President of Bosch Group in Russia, Belarus, Ukraine, Central Asia and the Caucasus; David Oker, Commercial Director of Robert Bosch Ltd in Georgia; and Julia Golubtsova, Head of Corporate Communications at OOO Robert Bosch, who met with Georgian media representatives to give an overview of the company’s trends and development strategy and its operations both globally and regionally, with a focus on Georgia.
During the first part of the presentation made by Overstolz, Bosch Group was said in 2016 to have had a sales growth of 3.6% - EUR 73.1 billion, with 390,000 associates and 280 manufacturers worldwide. “The company raised its research and development spending under the 10% of sales reaching up to EUR 7 billion,” Overstolz noted.
“Our CFO decided that Bosch is to make considerable upfront investments as a transformation process and at the same time save in high profitability over the long term,” he said of the company’s plans.
This year, Bosch achieved a rise in sales of 3 to 5 %.
“Taking our existing business forward, opening up new areas of business and occupying the leading position in technology is our strategy,” Overstolz stated, pointing to the fact that mobility, IoT (Internet of Things) and connectivity, are considered the focal points of this transformation.
“In the industrial environment, and in our company in particular, connectivity is changing business models, products, and not least the world of work itself,” he said. “For us, this means opportunities we must seize… we must actively contribute to shaping change”.
Bosch Group plans to make new mobility possible, mobility which is “without emission, without stress and without accidents”.
“It’s no longer just a case of making better cars: we have to re-invent mobility. Cars will be electrified, automated and connected with other transport, improving air quality in cities in which 70% of the world’s population will live by 2050,” he said.
He noted that Bosch is also looking into driving the transition to electromobility, with the company’s efforts directed at making electro cars that are suitable for the mass market, while also working on ways to double the density of car batteries by 2020.
With regards to the IoT, Bosch sold 27 million web-enabled products in 2016 and it is now the company’s strategy to make every new electronic product they produce reliable and connected. As for Artificial Intelligence (AI), the Bosch company representative said that in ten years’ time, they expect every new Bosch product made will be developed and manufactured by itself, or will itself have AI. In the coming years, over EUR 300 million will be invested in driving forward such technology.
The regional President of Bosch Group then went on to introduce the various sectors and operations of the company, highlighting that mobility solutions made 5.5% in sales growth to EUR 43.3 billion last year, representing 60% of the company’s turnover, while the industrial technology sector is represented by EUR 6.3 billion. The consumer goods sector, nearly a quarter of the company business- Bosch is regarded as the leading supplier of power tools, accessories and home appliances, made EUR 17.6 billion for the company last year. The energy and building sector is represented by EUR 5.2 billion - Bosch is said to be one of the leading manufacturers of security, communication, and energy efficient and heating solutions.
In Georgia, Bosch is mainly represented through power tools and home appliances, heating systems and mobility.
“Our turnover in 2016 increased by approximately 13%, and the growth is pretty much the same in 2017,” Oker stated. “Before 2011, we were represented in Georgia on the basis of the export model, bringing products from Germany, but as we became more interested in Georgia, we decided to open our own office here. We clearly see Georgia as a regional hub from which we conduct our business in Armenia and Azerbaijan,” he said, noting that every third instrument sold on the Georgian market is produced by Bosch.
The presentations were then followed and ended with a session of questions from media representatives, covering a broad range of topics from Bosch merging with other companies (with a clear ‘no’ as an answer), the possibilities of opening factories in Georgia and introducing electric cars in the country, to the problem of non-existing technical inspection, comparing the markets of Georgia and Azerbaijan, to smart city projects and future investment plans in the region.
“We still see potential in the product areas where we’re active in the region. As far as housing infrastructure is concerned, we could increase the share of heating appliances, but all of this is evolutionary, not revolutionary,” Overstolz said.
“We’re supporting smart cities like San Francisco and Singapore… the details have to be analysed to see what kind of technology is needed, but of course we’re open,” he said when asked, if they are considering Anaklia City among their potential projects in the future.
Nino Gugunishvili