Bosch evaluates acquisitions in Brazil and bets on domestic market
Valor Econômico
Bosch, a leading supplier in the world of high technology components for the automotive industry, bets particularly on the Brazilian market to improve revenues generated in Latin America in the coming years. In Brazil, the company also evaluates acquisition opportunities, with the possibility of doing some business until the end of the year.
Regardless of whether or not to go shopping alteady in 2010, according to the president of Robert Bosch Latin America, Andreas Nobis, the expectation is that revenues in the region, this year, are close to the levels seen in 2007, mainly driven by auto parts, and sales in the Brazilian market. Exports, once again, are losing ground in sales, as part of the company's strategy to increasingly reduce exposure to the foreign markets, mainly due to the exchange.
In an interview given to Valor in the complex of Bosh in Campinas, Nobis said that the company plans to invest R$ 45 million (US$ 25 million) until the end of the year on fixed assets in the country - in the last seven years, the contributions exceeded R$ 1 billion (US$ 556 million). About possible acquisitions, he declined to elaborate. Last year, the group's net sales in Brazil amounted to R$ 3.8 billion (US$ 1.93 billion), 20% less than in 2008, without considering the participation of BSH, a joint venture with Siemens for the area of appliances - in 2009, Bosch sold the operations of BSH in Brazil to Mabe. The amount accounted for 88% of its R$ 4.3 billion (US$ 2.18 billion) earned in Latin America, and the prospect is that the country maintains a share of nearly 80% in regional businesses in the medium and long terms.
The division of auto parts, which will continue being relevant to the company's global sales, should see the increasing participation of the areas of industrial technology and consumer goods. Last year, in Brazil, this division was responsible for 78% of the revenues - considering the Latin American operation, the share is 73%. As for the destination of the products, he added, sales of Bosch in the Brazilian market in 2010 will make up a new round of retraction in exports, which accounted for 21% of its revenue in Brazil in 2009, compared to 29% last year. Compared to 2007, according to the group's projection, the automotive sales should show growth of 20% and the exports 14% fall.