Gearing up to cash in on the growing Indian market, German firm Bosh Group is hiking its power tools manufacturing capacity in the country to five lakh units in three years by shifting production facilities from China and Malaysia.

"Bosch's policy has been to manufacture products in markets where it sells. As we expect more products to be introduced in the Indian market, the production capacity of the Indian plant will also be augmented," Robert Bosch Co Senior Vice-President Asia Pacific (Power Tools) Matthias Knofe told reporters in New Delhi.

As per the plans, the capacity of Bosch's production unit in Bangalore would be hiked to five lakh tools per annum in the next three years from the current installed capacity of 2.2 lakh.

"The capacity enhancement will be through shifting of production units from countries like China and Malaysia," Mico Vice-President and Country Head Power Tools Division Navin Paul said. Knofe said while shifting production location was a normal proctice in Bocsh, the company was also looking at introducing tools like drilling machines, angle grinder and automated hammer in India soon.

Asked about the investments required for the capacity, both the officials declined to comment. Bosch is expecting a growth of 20 per cent in its power tools and accessories business, which clocked a turnover of Rs 202 crore (Rs 2.02 billion) last year, Paul added.

"Already in the first six months of the year we have achieved Rs 125 crore," he said, adding the company was also expecting sales to come from rural areas where it has carried out extensive marketing campaigns.