Motor Industries Company Ltd, a subsidiary of the German auto ancillary giant Bosch, on Thursday said Bosch is keen on enhancing its presence in India and planning an investment of close to Rs 1000 crore (Rs 10 billion) in the country.
Bosch, which had a growth-oriented view of India, plans to invest close to Rs 200 crore (Rs 2 billion) in the Bangalore plant and close to Rs 600 crore (Rs 6 billion) in Nasik in addition to investments in Bosch's other units, M K Vishwanathan, joint managing director said.
Speaking on the issue of MICO's marginal decline in profit for the year ended December 2005, he attributed it to "high depreciation cost" arising out of higher investments in new technology made by the company.
MICO on Wednesday reported a net profit of Rs 343 crore (Rs 3.43 billion) for year ended December 31, 2005, as compared to Rs 374.76 crore (Rs 3.74 billion) in the year-ago period.
The pressure on profits were mainly due to the investments made in new technology and expansion activities, Vishwanathan said. The increase in material prices and commodities had contributed to high operating margins.
Sounding optimistic on the automotive front, he said the government of India had made several announcements including investments in infrastructure, the golden quadrilateral; all these investments would mean a demand for more transport and better business for the company.
However, on the negative side the increase in oil prices and interest rate was going to affect growth, he said.
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