Bosch to invest Rs 1,300 crore to develop IoT in India; may fund startups

The Bosch Group, which recently announced an investment of 1.2 billion euros in the Asia-Pacific region to develop smart technologies, is betting big on the adoption of Internet of Things (IoT) in India.

Keeping pace with this development, the German technology supplier is investing Rs 1,300 crore in IoT space in India. Further, the company is also exploring the option of discovering new tech-based startups in line with its DNA (Discover, Nurture and Align) strategy.

Explaining the IoT future in India, Vijay Ratnaparkhe, managing director and president, Robert Bosch Engineering and Business Solutions said, “At Bosch India, we expect the future to be driven by key trends such as digitisation, growing energy needs, urbanisation and better ecological solutions.  With the largest development center outside of Germany, Bosch India is committed to offering connected smart manufacturing solutions. While national initiatives, such as ‘Make in India’ and ‘Digital India,’ intend to build the brand and competitiveness of India’s core sectors, digitisation will improve India’s competitiveness while also helping businesses move faster to market.”

On November 11, Bosch India hosted a smart manufacturing conclave in Mumbai – Bosch Smart Manufacturing Conclave (BSCM). Of the nine core elements of smart manufacturing, Bosch India offered an experience of the APAS robotic arm and Augmented Reality-Virtual Reality demonstration.

Encouraging startups

In order to tap the full potential of the industrial internet, Bosch is open to collaboration with other companies. In September, the German technology major tied up with GE Digital for connected manufacturing and with SAP to develop cloud technology and software solutions.

“For a business to grow, you have to tie up with companies big and small. We have already tied up with GE Digital and SAP to tap the potential in the IoT segment,” said Stefan Assmann, Bosch’s senior vice president of connected industry.

Moreover, the company is open for a potential collaboration with tech startups in India, for which it is following a Discover, Nurture and Align (DNA) strategy. Under the program, startups can pitch their ideas and innovations to Bosch, post which the company will take a call with the kind of support to be provided to the shortlisted candidates. Robert Bosch Venture Capital, a part of Bosch Group, will have the final authority of funding the startups.

“As a technology and solutions leader, Bosch India is looking to partner and collaborate with start-ups that work on disruptive solutions in the areas of mobility solutions, smart manufacturing, smart cities, Meditech, Agritech and energy,” said Manohar Esarapu, head of Bosch India’s Start-Up Alliance program.

Commenting further, he said: “Bosch is also looking to work with start-ups who could help build solutions in enabling technology areas such as, internet of things (IoT), deep learning, analytics, cloud, virtual reality and block chain.” These start-ups would receive personalised mentorship from Bosch experts in areas such as, engineering, scope specific domains, product design, operations, finance and legal among others. “Through this accelerator program selected start-ups have an opportunity to an investor pitch, and the entire Bosch ecosystem, such as, its customers, suppliers and partners among others,” added Esarapu.      

A program unique to India

Such an accelerator program is unique to India as it is the first time Bosch would be working with external start-ups, to mentor and get them investment ready. The German major is also open to partnering with these start-ups in order to cater to new markets, apart from providing disruptive business models.

Through this model, Bosch intends to gain a strong foothold into India’s booming start-up market. It says that such an exposure would also help the organisation to bring about a transformational change, helping it become an agile and flexible organisation while doing business. Importantly, it would be able to hedge itself against possible disruptions often hovering over traditional businesses. “This program will help Bosch diversify growth into areas beyond mobility solutions,” said Esarapu.  

India to lead overhauling of manufacturing facilities

India’s manufacturing sector is going through a transformational phase with smart manufacturing gaining increasing ground in the scheme of regional business operations.

“India’s core pressure points in the manufacturing sector have been reducing cost, improving quality and process visibility, among others. It is precisely in these areas smart manufacturing can ease stress levels,” said Ratnaparkhe.

Turbocharging India’s production activities

For one of India’s largest two-wheeler manufacturers Bosch India has identified areas, in the maintenance function that could further be improved. The company has proposed a solution that combines preventive maintenance and status dashboards, operator mobility solutions on tablets and mobile phones, and remote diagnostics including real time status and control. The dash board provides detailed information on the breakdown, such as name and description of the breakdown, location, date, time, duration, operator and shift details. The maintenance solution will allow operators flexibility and mobility solutions as they can access notifications on the go. The remote diagnostics tool enables analysis of breakdowns over the Intranet and the Internet.

A connected future

Explaining the future of connectivity and IoT, Ratnaparkhe said, “There are truly exciting times ahead in the IoT space. Everything from cars to buildings will be connected. Imagine your car, which is electric, connected and autonomous helping you avoid a traffic jam or a burglary at an ATM kiosk on your route. What's more, it can also find you a parking space enroute your destination!”

Also read: Bosch India posts 10.8% growth in profit for Q2, FY2017