Bosch to buy Bosch Chassis Systems for over Rs 9,000 cr

Bosch Ltd., the flagship company of the Bosch Group in India, said it will buy 100 per cent stake in Bosch Chassis Systems India Private Limited (RBIC) from its existing shareholders Robert Bosch Investment Nederland B.V(RBNI), Netherlands, and Robert Bosch LLC, USA for a cash and non-cash consideration not exceeding Rs. 9,068.68 crore.

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Bosch said it intends to significantly enhance its portfolio by acquiring the Vehicle Motion business. This portfolio realignment creates and enhances long-term value for Bosch Ltd., reinforcing the company’s vision to be the preferred mobility partner for its customers across vehicle systems, software, and hardware, while being the leading technology provider for all mobility solutions.

This development positions Bosch Limited with a more comprehensive mobility portfolio, enabling it to better cater to the evolving demands of India’s automotive sector, it said.

The transaction will strengthen Bosch Limited’s capabilities enabling it to further invest in critical domains like safety and braking over and above its strong footprint in power solutions, the company said in a statement.

Bosch Chassis Systems India Private Ltd. represents the business of Bosch’s Vehicle Motion division in India and is one of the market leaders in automotive safety systems. Its offerings include active safety (antilock braking system, electronic stability control, and new braking systems), passive safety (airbag ECU and sensors) and actuation braking systems for passenger cars, two wheelers, and commercial vehicles.

“Adding Bosch Chassis Systems India Private Ltd, with a future-fit vehicle motion solutions business into Bosch Limited, demonstrates our organizational belief in enhancing the company’s growth trajectory through portfolio diversification. This transaction further solidifies our leadership presence within mobility, enabling us to utilize our strengths and deliver solutions backed by local research and development and local manufacturing,” Guruprasad Mudlapur, President of the Bosch Group in India, and Managing Director, Bosch Ltd., said in a statement.

Post the acquisition, Bosch Chassis Systems India Private Ltd will continue to operate as an independent entity with its governance being driven by Bosch Ltd.

“In India, we expect the mobility landscape to evolve radically by 2030 and beyond with sustainable, safe and exciting technologies. To foster a customer-first mindset and pivot from supplying individual components to delivering future ready platform solutions, it is imperative to unite our forces and adopt an integrated approach. This transaction empowers Bosch Limited to drive growth with a wider portfolio and combined offerings across the mobility tech stack,” Sandeep Nelamangala, Joint Managing Director, Bosch Ltd., and President, Bosch Mobility India, said in a statement.

The boards of the Bosch Group, Bosch Limited and Bosch Chassis Systems India Private Ltd. have approved these transactions. It is now subject to approval from Bosch Limited shareholders. Post this approval, Bosch Chassis Systems India Private Ltd will become a 100 percent subsidiary of Bosch Ltd, the company said.

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