Bengaluru: Automotive major Bosch is well-prepared to adopt the new tax regime, which is expected to be rolled out on July 1, but could create some turbulence, according to a top official here on Thursday. Speaking to the reporters, Bosch Ltd managing director Soumitra Bhattacharya said, “There could be some short-term turbulences since the new tax structure is complicated. The government needs to ensure that all the vendors are brought into the system effectively.”
While announcing the company’s annual financial results, Mr Bhattacharya spoke about the firm’s future plans. “We would like to be a leading Internet of Things (IoT) company globally. Almost 50 per cent of Bosch’s products are connected and talk to each other. We aim to make it 100 per cent by 2020,” he said. Additionally, he said that the firm remains optimistic about the current fiscal. “A progressive government focused on reforms, reducing interest rates, expectations of a normal monsoon and improved liquidity post remonetisation, substantiates our current outlook. These factors have also helped improve market sentiment,” he added.
He feels that the new reforms such as GST, smart cities and stable political situation will contribute to moderate growth both in the automotive as well as non-automotive sector. Bosch, which has a manufacturing plant at Bidadi, said that the company expects it to be completed in 2019. Mr Bhattacharya also said that it will have the capacity to accommodate around 2,500 associates. The plant will manufacture new generation and conventional fuel injection products and components.
Bosch has significantly invested in developing new products and facilities in Bidadi and Nashik. Overall the company made capital investments of around `630 crore in 2016-17, Mr Bhattacharaya said.