Bosch Siemens plans to increase localisation of home appliances

 India. German home appliances maker, BSH Household Appliances has planned to upsurge its manufacturing capacity by increasing its manufacturing capacity in its Chennai Plant. The company currently manufactures washing machines in India also plans to manufacture other appliances such as refrigerators, dishwashers, kitchen chimneys, ovens, to name a few. The Chennai plant has an annual production capacity of 300,000 units of front load washing machines and is currently utilizing less than 50% of its capacity. The localization of these products is currently less than 40%, however, the company plans to increase it to around 70%.

BSH has also planned to invest around euro 100 million over the next five years in research and development, manufacturing and marketing of its products in India. Bosch Siemens Home Appliances (BSH) entered India in 2010 as a wholly-owned subsidiary of BSH Hausgeräte GmBH which is a German home appliances manufacturer and is currently in the process of setting up its office in India. The company has also planned to position Siemens as a premium brand while Bosch branded products while projecting Bosch products at the mid-range of the market. This has resulted in both the companies currently having equal share in product sales.

According to TechSci Research, this step is expected to strengthen the company’s competitiveness in the home appliances market in India. TechSci Research also depicts that by increasing its product localization in the country, the company would be able to increase its competitiveness by reducing costs such as import duties, logistics, moreover, the company can also expand its presence in other countries located in the south east Asian region.