Bosch Board of Management Chairman Volkmar Denner wants India to roll out labour reforms, especially those that enhance productivity and help companies become competitive globally.
Progressive labour reforms are fundamental prerequisite, he said, while welcoming the ‘Make in India’ campaign of Prime Minister Narendra Modi. Addressing presspersons here on Thursday, he hinted that future investments of Bosch could be linked to reforms.
His emphasis on labour reforms assumes significance as it came in the backdrop of Bosch’s auto parts unit in Bangalore facing labour unrest.
To a question, he said the intention was to continue on the path of investment “provided the labour conditions allow us to be competitive.”
He pointed to free trade zones across Asia and how they were set to increase. He urged India, to compare with itself with others in Asia and pursue labour reforms. The cost benefits of operating out of one of FTZs, he added, varied depending on the product, material and labour content.
Asked about the strike at the Bangalore facility, he said it was a concern given that Bosch maintained “very close, very good relations with employees and labour unions… pays wages and benefits to its workers that belong to the upper range of the standards. Our expectation is that we will find an amicable solution soon [to the strike].” Compromises were not uncommon during such negotiations, but they could not be at the cost of competitiveness of the company, he asserted.
On the ‘Make in India’ campaign, Mr. Denner felt it was too early to judge since many of the announcements were still to come into effect.
About the research and development activities of Bosch in India, Mr. Denner said the engineers working out of Bangalore and Coimbatore contributed significantly to the innovations that Bosch.
Mr. Denner said India had an important role to play in fulfilling the group’s target to double sales in the Asia Pacific by 2020.
“Our business is developing especially well in Asia Pacific. Over the past ten years, we have been able to double our sales in this region. It is our target to double them once again,” he told presspersons here.
Stating that the country continued to offer promising opportunities for Bosch and its product range in the fields of mobility, infrastructure, energy, security, manufacturing and healthcare, he said economic indicators about India “give us much cause for optimism – especially after the recent elections.” Bosch, he said, since 2010, had invested Rs.5,400 crore to establish new production plants, expanding research and development centres and on existing facilities.
“Today, we employ more than 27,000 associates in India. The number has doubled within five years, and is expected to grow further,” he said, adding that it reflected Bosch’s firm belief in the country’s growth potential.
