Bosch looking to expand in Russia

Leading German Industrial Group Bosch is expecting to expand sales in Russia through the growing Russian auto market and large sporting events such as the Winter Olympics in 2014 and the World cup in 2018.

Russia is ranked the 6th largest Automotive market in the world with 20% of global auto sales expected to come from Russia by 2015. Bosch is planning to build a € 50 billion euro plant in Samara Russia to make auto components or companies that build and assemble motor vehicles in Russia. Overall spending on new motor vehicles in Russia was worth over € 26 billion euro’s last year of which over € 20 billion of vehicles were imported.

Upcoming large sports events in Russia are also helping increase Bosch sales with the company suppling infrasture projects such as the Winter Olympics in Sochi which takes place in 2014 and Universiade an international sports event for university students. The Football world cup which is also taking place in Russia in 2018 is also expected to bring opportunities for Bosch.

Bosch earned € 1 billion in sales in Russia in 2012 which was an increase of 2% from 2011 which represents just under 2% of Bosch global € 52.5 billion of sales.

Bosch invested € 75 million euros in developing business in Russia in 2012 with Bosch opening two warehouses one in Tekaterinburg and Novosibirsk as part of an investment to improve Bosch logistics in Russia.  Bosch is also building a second plant in Saratov in Russia for the production of gas fired boilers. Bosch is also building a € 120 million Russia main office in Moscow which is seen as a priority for Bosch future expansion in Russia.

Source of image:www.bosch.com

The Bosch Groupcomprises Robert Bosch GmbH and its roughly 360 subsidiaries and regional companies in some 50 countries. If its sales and service partners are included, then Bosch is represented in roughly 150 countries. This worldwide development, manufacturing, and sales network is the foundation for further growth.
Bosch spent some 4.8 billion euros for research and development in 2012, and applied for nearly 4,800 patents worldwide. The Bosch Group’s products and services are designed to fascinate, and to improve the quality of life by providing solutions which are both innovative and beneficial. In this way, the company offers technology worldwide that is “Invented for life.”

The company was set up in Stuttgart in 1886 by Robert Bosch (1861–1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant upfront investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.