Annual financial results 2016
- AED 1.800 billion (nearly 450 million EUR) in consolidated sales across 14 countries in the Middle East
- Consumer Goods and Mobility Solutions divisions display strongest performance
Dubai, UAE, June 7, 2017: Bosch, a leading global supplier of technology and services, ended its 2016 fiscal year with AED 1.800 billion (nearly 450 million EUR) in consolidated sales across 14 countries in the Middle East, a slight increase from the previous year. The number of associates employed at Robert Bosch Middle East in 2016 stood at more than 100 for the 14 countries. “The Middle East continues to be an important region for Bosch, with strong growth potential in the years to come,” said Volker Bischoff, General Manager & Vice President, Robert Bosch Middle East. “Driven by investments into infrastructure and technology by countries in the Gulf region, we anticipate an increased demand for our products and services. Our results for the region so far are encouraging and we look forward to building further upon our presence and decades of success in the Middle East.“
As Dubai and Qatar are readying themselves for large upcoming exhibitions and sports events, Saudi Arabia is focusing on achieving the goals set out as part of Vision 2030. “With our connected innovations for future mobility, smart buildings as well as our Industry 4.0 solutions and modern consumer goods, we are well-placed to support the Middle East in achieving strategic goals put in place by regional leadership,” said Bischoff.
Growing regional presence: office opening in Pakistan
In February of last year, the Bosch Group grew its regional presence by inaugurating its first office in the Islamic Republic of Pakistan. The Lahore-based office is serving as the liaison office for the company’s Automotive Aftermarket, Power Tools, and Security Systems divisions. Bosch has seen over 20 percent growth across all active business sectors in Pakistan since the opening of the new office. “A market with nearly 200 million people and with a low average age holds many opportunities for a company like Bosch. Our products and services have the potential to support the rising growth that is taking place in Pakistan at the moment, which is evident by our rapid growth in this market,” said Volker Bischoff. “To further increase our business in the country, we are investing in the market and continue to develop our relationships with local customers.”
Development of Bosch business sectors
Bosch business remains stable across all business sectors active in the Middle East region. The Consumer Goods (Power Tools and Household Appliances) and Mobility Solutions business sectors saw the strongest performance of the year, with Bosch registering steady growth in 2016.
The Power Tools division expanded its regional presence with the opening of a new warehouse in Dubai Investment Park (DIP), catering to demand from construction professionals and DIY-enthusiasts across the region. The 7,200 square meter warehouse houses over 5,000 pallets. It functions as a hub for the Middle East and East Africa, receiving and distributing tens of thousands of orders every year. The best-selling product of 2016 was the exceptionally handy, lightweight and high-precision GSB 13 RE drill from the Bosch Blue range. The 650 W high performance power tool demonstrates a synergy of quality and affordability, and is tailored to cater to professional renovators and interior decorators in the region’s growing construction sector.
In August 2016, Bosch and its longstanding partner in Saudi Arabia, E.A. Juffali & Brothers, met with local media to celebrate 50 years of business and outlined a joint growth strategy in the Automotive Aftermarket segment. With diversifying the economy away from fossil fuel dependency as one of the cornerstones of Vision 2030, Bosch’s products for electrified, connected, and automated Mobility can help enable this shift. Through a partnership with JAPCO (Juffali Auto Parts Company), Bosch currently serves 755 outlets through 13 JAPCO-owned branches. By 2020, 23 branches serving 2020 parts outlets are slated to be in active operation, demonstrating support for the Kingdom’s Vision 2030 and the increased involvement of the private sector. The growth of the business will play a role in achieving the Kingdom’s Vision 2030, supporting Saudi Arabia’s development.
The expanded use of Augmented Reality for the vehicle owner and supporting organizations such as repair workshops, police stations and insurance companies, will be another major avenue for growth for Bosch. Augmented reality is set to have a major impact on the Middle East aftermarket. In line with developing the workforce in KSA, this technology will play a crucial role in bridging the skills gap of technicians in the automotive aftermarket.
Continuous expansion of activities in the region
This year, within the framework of its regional growth strategy, Bosch is establishing a legal entity in Saudi Arabia, and will increase the number of business divisions operating in the Kingdom. As efforts ramp up towards economic diversification and infrastructure spending, in line with Vision 2030 and the National Transformation Programme, Bosch is well-placed to support the growth initiatives of organizations in the Kingdom. A new showroom was opened in partnership with Juffali’s technical equipment company JTECO in Jeddah in March 2017. The showroom is the biggest Bosch tools and equipment showroom in the region. It boasts the largest display of the Bosch Power Tools segment, hosting the entire range of Bosch professional and DIY offerings, as well as a holistic offering of the company’s Parts, Bytes and Services for the Automotive Aftermarket.
Bosch Group: Strategy and business outlook for 2017
For 2017, in light of a subdued economic outlook and geopolitical uncertainty, Bosch aims to achieve sales growth of between three and five percent. And despite still heavy upfront investments in safeguarding the company’s future, result is set to rise. “Business success today gives us the leeway to shape tomorrow’s world,” said Dr. Volkmar Denner, the chairman of the Bosch board of management. “As an innovation leader, we are shaping and driving transformation” Denner added. The focal points of this transformation are changes in the mobility sphere and IoT connectivity. By 2020, all Bosch’s new electronic products will feature connectivity. The key to this is artificial intelligence (AI). Over the next five years, Bosch will be investing 300 million euros in its own center for artificial intelligence.