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B2B MARKETING

Project Report: MICO-BOSCH

SUBMITTED TO:

Prof. V. Sekhar

SUBMITTED BY: GROUP 4

PALLAVI JAIN (08PG109)

PRATEEK AGARWAL (08PG250)

RICHA MEHROTRA (08PG186)

SUNDEEP SEHGAL (08PG199)

TUSHAR PAGAR (08PG208)

DATE: 10TH

November 2009

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CONTENTS

S. NO. TOPIC PAGE NO.

1. INTRODUCTION TO MICO - BOSCH

LTD.

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2. PRODUCTS 7

3. GROWTH OF THE COMPANY 9

4. COMPETITORS AND CLIENTS 10

5. SUSTAINABLE COMPETITIVE

ADVANTAGE

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6. CORE COMPETENCIES 13

7. PRICING STRATEGY 14

8. DISTRIBUTION & SELLING PROCESS 16

9. PROMOTIONAL STRATEGIES 18

10. PEOPLE AND PROCESSES 21

11. SWOT ANALYSIS 30

12. CONCLUSION 32

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ACKNOWLEDGEMENT

We would like to thank Mr. Sreeharsha for providing us an insight into the functioning and

role of the marketing in business marketing in his organisation. We are also thankful to Mr.

Rohit Gupta for providing additional inputs that went a long way for completion of our

project.

We would also extend our thanks to Prof. V. Sekhar for providing us an opportunity to carry

out this project which is so much of relevance to the real world industry today.

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INTRODUCTION TO MICO - BOSCH LTD.

Bosch Limited (formerly Motor Industries Company Ltd.) is the flagship of Bosch in India

headquartered in Bangalore. Incorporated in 12th November of the year 1951, Bosch Limited

has grown over the years to become India's largest auto component manufacturer, and one of

the largest in the world. It is also the second largest Indo-German Company in India. The

Business divisions of the company is classified as Diesel systems, Gasoline systems, Starters

and Generators, Electrical Drives, Automotive Accessories, Test Equipment, Auto

Electricals, Car multimedia, Power Tools, Packaging Machines, Special Purpose machines

and Security Systems. The company's manufacturing sites are located in Bangalore, Nashik,

Jaipur and Naganathapura.

The Company was shifted to Bangalore on 16th November 1953 premature Bosch was in

Chennai. A letter of intent for diversification into auto electricals was received in the year

1985 and approval for the import of capital goods was also obtained. Added a number of new

machines both at the Bangalore and Nasik factories during 1987 under the modernisation

programme. Also a fourth generation on-line computer facility was installed at the Bangalore

factory. The Company was awarded the status of Trading House in the year 1988. The unit

added A `Cold Start' facility enabling testing of engine at temperature as low as -20oc. The

Centre was appointed as a Bosch Global Development Centre with the global responsibility

for design and development of small single cylinder pumps for the entire Bosch Group.

Bosch's centre had already developed a new type of single-cylinder pump for vehicular and

stationary applications. During the year 1991 technical collaboration agreements were

entered for the manufacture of fine horning machines and super finishing machines. In 1992,

The Company introduced certain new items such as halogen bulbs, ignition cells, horns,

voltage regulators, cluth plates and clutch cover assemblies for the automobile sector. A

technical collaboration agreement was made with Witzig and Frank Turnatic GmbH for the

mechanical machining systems. Another one agreement was entered with Robert Bosch

GmbH, West Germany for the manufacture of bag form fill and sealing machines and also

Bosch awarded the ISO 9001 certification by the Technischer Ueberwachungs-Verein,

Germany. During the period 1994, two companies became the subsidiary of the Bosch Ltd,

namely Motor Industries Software Services Ltd (MISSL) and Motor Industries Trading Ltd

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(MITL). The Memorandum of Understanding with the Government of Rajasthan was signed

in 1996 to set up Jaipur plant.

The three plants of the Company at Bangalore, Nashik and Naganathapura awarded the QS

9000 certificate by TUV, Essen during 1997. The company has entered into car servicing

business in the year 2002, launched India's first Bosch Car Services Workshop (BCSW) in

Delhi. The Industrial Equipment Division of the company has developed endurance-testing

equipment for Timken and has launched new range of products in the same year consisted in-

car multimedia systems, the San Fransisco CD-70, in-car MP3 player and velocity range of

amplifiers, speakers and sub-woofers. In 2003, the Spark Plug manufacturing activity of the

company at Naganathapura works has been discontinued. Bosch Security Systems launched

Network Video Solutions, a Video Solutions and Video Surveillance system that allows

remote monitoring over IP (Internet Protocol) networks. Bosch rolls out new surveillance

system during the year 2004. In 2005 the company moved in production of key products to

MICO plants in India and also launched 30 millionth PF pump as a footprint. Bosch had Dun

& Bradstreet - American Express Corporate Award 2006 in recognition of size and growth

among the top 500 companies of India.

The Deployment of Business Excellence based on the European EFQM model has been a

focused area for the company in 2006. Several initiatives was started to ensure that these

concepts percolate down in the organisation and become a part of the work culture. Bosch

opened its first manufacturing facility for high-pressure common-rail pumps in 2006 in India.

Since August 2007, the company has been manufacturing common rail injectors locally. In

2007 Bosch made as many as 100,000 common-rail systems in India. The CII National World

skills, 2007- `Best Company Award was came to the company's hand. The Brand

consolidation for Bosch in India was made in January of the year 2008, India's largest auto

component supplier; Motor Industries Company Limited (MICO) has been renamed as Bosch

Limited. The Registrar of Companies, Government of India also approved the new name of

the company on 18th January 2008. As on February 2008 under expansion activities in India

Bosch and Igarashi Motors India established joint venture Development, manufacture, and

sale of automotive components for growing Indian automotive market. The company planned

to invest Rs 850 crores by 2010, Apart from the expansion of common rail diesel production,

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this money will also be invest in the manufacturing of gasoline systems components from

2008. Moreover, it is planned to start local ABS production at the end of 2008, and the

production of electronic control units in 2009.

As a leading technology and services company, take advantage of global opportunities for

strong and meaningful development. The company's ambition is to enhance the quality of life

with solutions that are both innovative and beneficial. Bosch focuses on core competencies in

automotive and industrial technologies, as well as in products and services for professional

and private use. The diversity of company's culture is a source of additional strength, that's

company lives day by day.

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PRODUCT RANGE

BOSCH GROUP

1. Automotive (MICO) 2. Industrial Products 3. Consumer Goods

Product in Automotive domain

Auto Electricals

Belts

Clutch plates and Cover

assemblies

Filters

Gear pumps

Batteries

Braking systems

Brake pads

Diesel Systems

Gasoline Systems

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Horns

Spark Plugs

Wiper Blades

Lighting

Lubricants

Relays

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GROWTH OF THE COMPANY

As per the data collected from the Capitaline Databases, we found that the company is doing

really well in the Indian markets. We can see that the sales has grown from rupees 2977.48

crore in December 2005 to 4601.82 crore rupees in December 2008. Also the profit before

interest and tax has grown from 542.57 crore in 2005 to 865.31 crore rupees in 2008. When

come to Profit after Tax, we see that the company has grown from 343.07 in Dec 2005 to

633.87 crore rupees in Dec 2008. The company has shown tremendous improvement in terms

of sales and PAT in the period between Dec 2005-Dec 2006. Then the company showed a

consistent growth from Dec 2006 to Dec 2008.

Fig 1. GROWTH RATE OF BOSCH IN TERMS OF SALES PBIT AND PAT(in Rs. Crore)

2977.48

3781.16

4325.27

4601.82

542.57

804.72 859.72 865.31

343.07547.99 609.21 633.87

0

500

1000

1500

2000

2500

3000

3500

4000

4500

5000

Jan-05 Jan-06 Jan-07 Jan-08

NET SALES

PBIT

PAT

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COMPETITORS

Some of the major competitors of MICO are:

1) DELPHI: Delphi is a leading global supplier for the automotive, computing,

communications, energy, and consumer accessories markets. It is headquartered in Troy,

Mich. Delphi has more than 100,000 employees in 32 countries and more than 100,000

employees in 32 countries.

2) DENSO: DENSO is a leading supplier of advanced automotive technology, systems and

components for all the world's major automakers, operates in 32 countries and regions with

approximately 120,000 employees. Global consolidated sales totalled US$32.0 billion for

fiscal year ended March 31, 2009.

3) SIEMENS: It has a wide presence across the country, its operations include 17

manufacturing plants and an extensive network of Sales and Service offices. It is also part of

a vast global network of 475,000 people, operating in over 190 countries, which serves to

enhance our standing.

CLIENTS:

MICO Bosch has a large client base all over the world. Some of them are as follows:

TATA

MOTORS

MAHINDRA

AND

MAHINDRA

BAJAJ

TVS

HONDA GENERAL

MOTORS

MARUTI

CHEVROLET

MAJOR

CLIENTS

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SUSTAINABLE COMPETITIVE ADVANTAGE

1) SUSTAINABLE MOBILITY AT MICO BOSCH- OVERVIEW

Individual mobility is increasing worldwide, particularly in Asia and Eastern Europe.

This is because greater individual mobility means more pollutants and CO2 emissions, greater

consumption of resources, and more accidents. That’s why MICO Bosch is striving to

achieve a form of sustainable mobility which is low in pollutants and independent of fossil

fuels. Working in tandem with its customers, it is researching the potential for powering

vehicles by combining an internal-combustion engine with an electric motor or by using an

electric motor on its own. The path adopted by MICO Bosch is:

Engineers are unlocking the energy-saving potential of the internal-combustion engine.

With smart technology along the full length of the drive train and with hybrid solutions, it

helps the car and the internal-combustion engine become increasingly clean and efficient.

It is adapting the internal-combustion engine to work with alternative fuels produced

either synthetically or from renewable raw materials.

It has found niche segments for electric drives that use a fuel cell as an energy converter

to replace the internal combustion engine.

MICO Bosch is working on the next phase of technical developments to meet the stricter

emission limits soon to be introduced in Europe, the U.S., and the emerging markets in Asia.

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2) COMBINING TECHNOLOGIES

So far, the necessity to cut fuel consumption and CO2emissions has led to increased demand

for MICO’s injection systems in particular. Customers are now turning their attention to

other technologies, including thermal and vehicle electrical system management, more

efficient alternators, and the start/stop system.

These components can each help improve the energy efficiency of vehicles by several

percentage points

3) INCREASING SAFETY

The ELECTRONIC STABILITY PROGRAM launched by Bosch in 1995 plays a key role in

improving road safety. ESP also forms a fundamental basis for new functions currently being

developed by our engineers. One example is the Combined Active and Passive Safety

(CAPS) system, which aims to further improve accident prevention

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CORE COMPETENCIES

1) High Market share: With a market share of almost 95%, it has a virtual monopoly in the

Diesel Fuel Injection Equipment.

2) Technological superiority and strong support from parent Bosch: Strong parental support

in terms of technology transfer coupled with high degree of localisation has been a key

success factor. MICO has successfully followed the policy of localising global knowledge.

3) Global R&D hub: MICO Application Centre (MAC) has been established in India for

R&D purposes. It has emerged as a key global R&D competency centre catering to the entire

Bosch Group. It is the first of its kind in India and Bosch Group’s first outside Europe.

4) Alternative Energy: MICO Bosch is moving towards energies such as electricity while

also improving existing power train technologies, including diesel systems, gasoline direct

injection and hybrids to reduce the energy from conventional resources. It has also taken up

bio diesel and CNG technologies to address energy challenges.

5) Service: In India 50 per cent of Bosch’s current business is accounted for by the diesel

segment. Bosch positions itself as a one-stop shop for sales and service and to make

available the entire range of products to those who come for service. Bosch is expanding the

product range in this business by bringing some of its global technology products into India.

It is also planning to manufacture some of these products in India. A CORE

COMPETENCY CENTRE has been created in the country to manufacture these

equipments in the MICO production complex.

6) Quality: MICO Bosch has ISO Certified Quality Management System. Certified

Locations are MICO, Incorporated; MICO Europe ltd. and MICO Mexico.

7) Large Contact Base: MICO has a large supplier and customer base and maintains a long

term relationship with them.

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PRICING STRATEGY

The industrial market understands various aspects of the pricing since pricing is the most

critical part of industrial marketing strategy. Different strategies such as market segmentation

strategy, product strategy, and promotion strategy are related to pricing strategy. In order to

achieve the dual objective such as to meet the company objective and satisfy the market

needs, the industrial marketer has to integrate the various strategies.

Pricing is the critical marketing mix which actually produces the revenue. Pricing objectives

play important role while deciding on pricing. MICO-BOSCH is the market leader in the

automotive component manufacturing especially in sparkplug and CRDI (Common Rail

Diesel Injection) System. It has 80% market share in sparkplug business India and 75%

business in CRDI. It has different pricing objectives for different products.

The pricing of MICO- BOSCH is aligned with its corporate strategy. The parent company

BOSCH keeps aside 92% profit of its business for the charity. So BOSCH is not the profit

seeking organisation.

Pricing Objectives of MICO-BOSCH:

1) Product- Quality Leadership:

Though the company is the market leader in Indian business, the quality is the central aspect

of its business. By providing highest quality of technical product and efficiency with market

acceptable prices it aims to establish itself as a product quality leader in the market.

2) Avoidance of government’s intervention into the business:

India is not the capitalistic country. MICO-BOSCH is the market leader with quality products

so it might seek higher prices (i.e. prices more than competitive prices). To avoid predatory

pricing by any OEM, government may intervene in the pricing strategy and may force

company to rethink its policy. To avoid this possible threat, company has competitive pricing

for all its components.

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Pricing Methods:

1) Volume Based Pricing:

MICO – BOSCH keeps volume based pricing for large volume components like sparkplug.

For higher volume products, the price per unit of component is decreased. This is achieved

through economies of scale in technology. It has a high operating leverage which makes

volumes, the key driver to its profitability. Also it is OEM of all auto components so it can

sustain vibrancy in the market.

2) Administered Pricing:

Pricing of products like pumps is based on administered pricing. The infrastructure cost is

evaluated on the basis of total machines used, shop floor area used. This evaluation of pricing

is called as floor pricing. A mark-up price is added to this floor price. But it is generally

avoided to ask for ceiling price.

3) Market Skimming:

Market skimming is done for its SPM (Special Purpose Machines). These machines are

customised product of MICO-BOSCH. Every client has different technical specification for

SPMs. These machines are made from high end technology. They are not produced on large

volume basis. So SPM are quoted with higher prices.

General Practices Followed for Pricing:

1) Different Prices for different customers:

The price per unit of component varies from customer to customer for same product. It

depends upon the volume of business, relationship with customer etc.

2) Negotiation:

Prices are negotiated for all products. It starts from the highest levels and brought down to the

acceptable prices to both the parties. Value and technological advancements are core aspects

during negotiations.

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DISTRIBUTION

The distribution of company’s products is classified broadly in two types, direct selling and

the other is through distribution channels.

In direct selling, products are shipped directly to the customers of the company at Ex- factory

cost.

The MICO- BOSCH has pan India presence for distribution of its products to serve its entire

client base through its distribution channel. It has divided entire country into four

geographical locations. They are northern region, southern region, eastern region and western

region. Each region has sales offices and Sales houses.

Northern region:

Sales Office- Chandigarh, Panchkula, Lucknow

Sales House- New Delhi

Southern Region:

Sales Office- Bangalore, Secundarabad, Ernakulam

Sales House- Chennai

Eastern Region:

Sales Office- Guwahati, Patana, Cuttack

Sales House- Kolkata

Western Region:

Sales Office- Ahmedabad, Indore, Jaipur

Sales House- Mumbai.

The Dealer network is segmented into:

Authorised distribution:

These institutes have company’s products and they sell the products with license from the

company.

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Authorised Workshop:

These are the small workshops where defective products are taken back and made functional

again or replaced if required. These are helpful for reverse logistics.

Stockist:

Stockists of the OEM (customers of MICO-BOSCH) are distributed products of the

company.

Authorised Sales Outlet:

Company sales its small components like sparkplugs directly to the end user through its more

than 2500 retail outlets across India.

THE SELLING PROCESS

Order taking (e-tendering)

Order Processing

Kick off strategy

- Planners of manufacturing unit interact

- Warehouse

- Distribution

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PROMOTIONAL STRATEGIES

The special ownership structure of the BOSCH Group guarantees financial independence and

entrepreneurial freedom. The structure also enables the group to undertake significant up

front investments for the future and does justice to its social responsibilities in a manner

reflecting the spirit and will of its founder. 92% of the shares in Robert Bosch GmbH are held

by the charitable foundation Robert Bosch sifting.

The slogan “Invented for Life” is part of its long tradition, through which it communicates

the Group’s core competencies and vision that includes technological leadership, modernity,

dynamics, and quality and customer orientation.

The company has its roots in Germany, but has also always had a strong international

orientation. In the areas in which they do business, hardly any other companies have such a

broad global presence. Their global production and development sites work together as a very

closely-knit network. This network and the company’s global experience has put them in an

excellent position to exploit opportunities in current and future growth regions of the world.

1. On Track Program. Students are encouraged to take up Industry based Project works and

Industry based internships at Mico - Bosch. Industrial Visits are arranged for students.

Training programmes and workshops are arranged for students in emerging fields like

CAD/CAM/CAE and Advanced Materials.

2. SIAM Convention. Every year, Bosch actively participates in SIAM convention (Society

of Indian Automobile Manufacturers) which is the apex industry association representing all

vehicle and vehicular engine manufacturers in India. SIAM, is an advocacy group for the

automobile industry on economic, technology and public policy areas. It got into discussions

involving the following issues during the convention in August 2009 –

o “Revival – The Current Progress in Reviving The Global Automotive Industry &

Positioning The Indian Automotive Industry in The Future”

o “Restructuring - Build A Viable Industry Model: Challenges Facing The Commercial

Vehicle Industry”

o “Sustainability – Role of Collaborative Working”

o “Sustainable Mobility - Connecting India: Making a Paradigm Shift”

o “Leadership in The Two Wheeler Industry”

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3. Trade Exhibitions. Bosch has continuously displayed its capabilities in various renowned

trade exhibitions around the globe. It has been participating in Auto Expo at Pragati Maidan,

New Delhi, Tokyo Motor Show, IAA, IMTX and many more. Auto Expo is organised

jointly by Automotive Component Manufacturers Association of India (ACMA),

Confederation of Indian Industry (CII) and Society of Indian Automobile Manufacturers

(SIAM) and is a biennial event. The following are the visitor profiles at such exhibitions:

• Overseas buyer delegations

• International Business visitors

• Dealers Delegations

• Government Officials

• Senior Executives of PSUs

• CEOs/Decision Makers

• Ministerial Departments

• Managers/Department /Division Heads

• Engineers / Technicians

• Diplomats / Embassies / Missions in India

• State Transport Authorities

• Research Institutes / Educational Institutions

• Publication Houses

• Delegations from Technical Institutions

• Auto Enthusiasts

• Socialites

• General Visitors

4. Customized Websites. Bosch operates in various fields of component manufacturing. It has

broadly categorized its products and divisions and each is having a different portal for easy

understandability.

5. Automobile and industrial magazines. Mico Bosch regularly advertises its products and

work-culture in magazines like Autocar, Motor Trend, Top Gear, Overdrive, Auto India etc.

These magazines are published on a regular schedule, containing a variety of articles on new

vehicles, car interiors and technological advancements in automobiles.

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OPPORTUNITIES

Bosch After-Market Service

Identifying a huge opportunity in this segment, Bosch is planning to expand its presence in

the automotive independent after-market business. The company is targeting a turnover of Rs.

1,000 crores in the after-market and service equipment business by 2010 against the current

Rs. 700 crores.

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PEOPLE AND PROCESSES

The Marketing department at Bosch is headed by the sales and automotive after market

division and sales original equipment.

Sales and Automotive After Market has the following departments.

Marketing and Advertising (SMA)

Customer Business Development. (CBD)

Sales Planning and Distribution (SPD)

Sales Export (SXP)

Corporate Advertising and Publicity (CAP)

Sales Services (SEE)

Sales House Administration (SSA)

National Sales Manager

Regional Manager North

Area Managers

Territory Executives (Specific area Objectives)

Regional Manager East

Area Managers

Territory Executives (Specific area Objectives)

Regional Manager

West

Area Managers

Territory Executives (Specific area Objectives)

Regional Manager

South

Area Managers

Territory Executives (Specific area Objectives)

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Functions of the departments

SMA

Product Management.

Advertising and sales promotion.

Packaging

Marketing services and market research.

SPD

Warehouse activities

Orders fulfillment and insuring collection

Business with government departments

Procurement of trade goods

SXP

Sales, promotion activities in foreign countries.

Orders planning and export dispatch

Technical support and service training

Export statistics

SSE

Customer Service

Investigation in Field companies

Actualization of studies.

Development programs for Mico-Bosch means continuous competence development for all

associates. The company ensures career advancement for associates showing potential for

tasks involving greater responsibilities. They support job rotation to avoid functional silos

and also support transfers within the Bosch group.

It has various development programs like the Robert Bosch Kolleg/Carnegie Bosch Institute

– Platform for international exchange of experience and transfer of academic expertise for

managers and executives. They also have various instruments related to associate

development like Leadership Development, Specialist Education and Development program,

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seminars and executive training for managers for their professional advancement e.g.

seminars aligned to Robert Bosch competency model, etc.

PROJECT SPECTRA

This project was undertaken to make the MICO facility SAP-enabled country-wide.

MISSION

Achieve business advantage by aligning MICO's business processes with standardized best

practices of Bosch through an integrated, scalable solution responsive to dynamic business

needs.

ENTERPRISE RESOURCE PLANNING AT MICO

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CHANGES DUE TO SAP

Purchase order formats. Control the purchasing of products. The Purchase Order Form

helps the customer in identifying the purchase details and requested delivery date, delivery

details for the items purchased, billing and supplier information, quantity and unit price of

each item, total price of the purchase.

Material with Supplier (MWS) reconciliation procedure- it helps in inventory

management. It is a process to measure the efficiency of use of material. eg:-Process scrap

and End bit scrap accounting.

Packing material numbers will be changed to Bosch numbers.

WEB Electronic Data Interchange (EDI). It is applicable only for direct material area. Web

EDI is a cost-effective solution that allows the company to interact with its suppliers in the

regions without the worrying of implementing a complex EDI infrastructure. In its simplest

form, webEDI enables the company to receive, turn around, create and manage electronic

documents using just a web browser. This service seamlessly transforms data into EDI format

and transmits it to the trading partner.

EMPLOYEE BENEFITS

This is a summary of the employee benefits available at MICO, Inc.

MEDICAL & DENTAL INSURANCE

No premium participation for regular full-time employees. The cost to cover eligible family

members is $150.00 a month. Effective on the first day of the calendar month following 30

days of employment.

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VISION REIMBURSEMENT

A $400 allotment per family, per year, for glasses, contacts, and examination. Paid at 80%.

Effective on the first day of the calendar month following 30 days of employment.

LIFE INSURANCE

MICO provides regular full-time employees with a life insurance policy equal to the

employees’ annual salary (not to exceed $50,000). Effective on the first day of the calendar

month following 30 days of employment.

SUPPLEMENTAL LIFE & AD & D

Optional additional life insurance is offered to the employee, spouse and dependent children.

Premiums are paid by the employee. Effective on the first day of the calendar month

following 30 days of employment.

PROFIT SHARING PROGRAM

After 24 months of continuous employment at MICO, employees are fully vested and eligible

to participate in the MICO Profit Sharing Plan. This benefit is 100% funded by MICO and

based on company profitability.

401K

Voluntary employee retirement program which provides the employees with the opportunity

to invest in their future retirement by using “pre-tax dollars”. All new employees are enrolled

automatically at a 2% employee contribution UNLESS THE EMPLOYEE CHOOSES NOT

TO PARTICIPATE. Effective on the first day of the calendar month following 30 days of

employment.

VACATION

Vacation time is on an accrual system in which your initial accrual is 3.67 hours per pay

period. The accrual rate equals two weeks of paid vacation per year and increases with

longevity of service

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SICK

Sick time is on an accrual system in which you can earn up to five sick days a year or forty

hours. Sick time can be used for you or a dependent.

EDUCATIONAL ASSISTANCE

MICO supports and recognizes the value of continuous learning. Upon manager approval,

MICO will reimburse employees for books and tuition up to 100% with proof of course

completion and a passing grade of a “C” or higher. This benefit normally requires a

reimbursement agreement should the employee voluntarily terminate their employment

within 2-3 years of receiving the Educational Assistance. Effective on the first day of the

calendar month following 30 days of employment.

DIRECT DEPOSIT

MICO will electronically deposit (bi-weekly) your payroll earnings into your checking or

savings account of your choice.

MICO CREDIT UNION

As a MICO employee, you and your immediate family members are eligible to join the

MICO Credit Union. The MICO Credit Union offers low interest loans and savings accounts.

EMPLOYEE ASSISTANCE PROGRAM (EAP)

The MICO Employee Assistance program is available to all employees and anyone residing

in their household. The EAP is a confidential and free service offered to those who are having

problems and need assistance finding the resources they need.

NURSE/WELLNESS LINE

MICO provides access to a free / confidential nurse line 24 hours a day 7 days a week. The

nurse line is available to all MICO employees and individuals residing or visiting the

employees’ home. The nurse line is staffed with professional registered nurses.

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SHORT TERM DISABILITY

MICO provides all regular full-time employees with a no premium short-term disability

policy. The short-term disability will pay 60% of your gross earnings up to 26 weeks for non-

work related illness or injury

LONG TERM DISABILITY

In the event that you become disabled, MICO offers voluntary long-term disability benefits.

Premiums are based on two factors; the employees annual salary and employees age.

Premiums are paid by the employee.

RESEARCH AND DEVELOPMENT

MICO has a strong focus on R&D, and spends about 2-3 per cent of its turnover in this area.

The company is responsible for developing certain products like Single Cylinder Pumps,

Multi-Cylinder Pumps and mechanical Distributor Pumps for the entire Bosch group

globally.

Besides the R&D expenditure incurred by Bosch, the company spends a significant part of its

revenue in developing new products for domestic and international markets. With Bosch,

MICO has developed excellent R&D and manufacturing capabilities, which has helped build

a strong customer base and establish market leadership through the high quality of its

technology and products.

“MICO Application Centre (MAC) has been established in India for R&D purposes. It has

emerged as a key global R&D competency centre catering to the entire Bosch Group. It is the

first of its kind in India and Bosch Group’s first outside Europe.” MICO is a global

development centre for Bosch, and carries out the following activities:

• Design & development of new products, from concept to manufacturing

• Manufacture and testing of proto samples

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• Reliability testing

• Product quality improvements and rationalisation

• Technical co-ordination with other manufacturing locations, in respect of quality and

warranty

It also offers solutions to vehicle and engine manufacturers in the application of Electronic

Diesel Control and Petrol Injection Systems. It has the global responsibility of developing

certain products like single cylinder pumps, multi-cylinder pumps and mechanical distributor

pumps for the entire Bosch group.

The R&D centre is located in Bangalore and is managed by 200 engineers and 40 support

staff. The company invested nearly US$ 8 million in R&D, constituting about 2.3 per cent of

total turnover during the year 2001.

Facilities in R&D

Engine Test Cells for emission, performance and endurance

High Precision Calibration Test Benches

Injector Testing

Reliability and Metallurgical Testing

Computer Aided Design

Developments in the Application Centre

As a step towards meeting customer needs with the change in the emission scenario, a full-

fledged application test facility, for electronic diesel control, petrol injection, spark plug and

auto electrical products, is housed in the new Application Centre.

Set up primarily to cater to the requirements of the Indian auto manufacturers, this new setup

is a perfect test bed for manufacturers looking to upgrade their products with great attention

to detail. Facilities include –

Engine Testing dynamometer

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Chassis Dynamometer (vehicle testing)

High-precision calibration test benches

Spark plug testing

Starter motor testing

Alternator testing

Vibration testing

Glow plug testing

Climatic testing

Instrumentation lab

REWARD SYSTEMS

MICO Bosch follows a department based reward system where targets are set department

wise and if the department is able to achieve the set targets then they are rewarded bonus or

something. For example, if production department is able to produce more parts than the

target in lesser time they are rewarded. Similarly, for other departments like research

department, quality control department.

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SWOT ANALYSIS

Strengths

Established brand image around the world over the centuries.

High Customer satisfaction.

Continuous improvement of products and quality.

Streamlined procedures for every function of the company.

The company’s Corporate social responsibility has helped to develop its brand and the

market.

Employee development is given utmost importance.

Employees are given great importance, this has resulted in less employee turnover,

this has helped to curtail hiring and training costs.

Less dependency on external funds.

Cost reduction strategy is good.

Leadership through innovation.

Employee’s contribution towards work is noticeable.

World class infrastructure facility.

Continuous improvement of products.

Wide portfolio of loyal customers.

Bosch is cash rich, so dependency for external funds is minimal.

Weaknesses

Marketing of products is given less importance.

Adaptability towards change is low.

Unionized work environment.

Concentration is given to create monopoly opportunities in the market.

Performance appraisal of the employees is not satisfactory.

Haven’t diversified into other lines of business.

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Opportunities

Continuous innovation of products.

Produce innovative products

The Indian automotive segment is growing in excess of 40% annually and is being

flushed with a whole new range of cars and bikes. This gives a lot of opportunity to

auto ancillary companies like Bosch to be tied up with these car manufacturers for

original equipment (O.E) supply and after sales service.

Launch of TATA Nano – Bosch has an opportunity with the launch of the TATA

Nano car as Bosch is the supplier of the engine and the braking system of the car. If

the car is a hit in the market it would help Bosch to develop and to improve similar

type products.

Bosch can foray into other line of business as it has a good brand image.

It can produce eco friendly to replace existing products as the market for eco friendly

products are growing and the economic forums have cited the need for these products.

Threats

Increase of competition.

Brand image being diluted.

Too many substitute products available in the market.

Growing bargaining power of suppliers and customers.

Traditional method of working of the business.

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CONCLUSION

MICO Bosch today dominates the Fuel injection equipment and Spark plugs market in India,

and is almost synonymous with these products. The company enjoys a relative monopoly in

most of its products. This can be attributed mainly to its continuous innovation and

competitive pricing strategies used. MICO has the advantage of having Bosch as its parent,

which provides it with support in terms of technology transfer coupled with high degree of

localisation. MICO has successfully followed the policy of localising global knowledge.

The company’s continuous success can also be attributed to its ability to continuously

innovate due to its strong R&D. Thus, it has been able to provide products that incorporate

the latest technology and meet the requirements of its global and domestic customers in terms

of performance, safety and emission control.

MICO is capitalising well on its core competencies and will continue to do so thereby further

strengthening its position in the growing auto component industry.