Bosch eyes 8% annual growth in Myanmar on rising demand for auto after-market products

BOSCH GROUP, a global supplier of technology and services, has set its sights on growing its business in Myanmar by 8 per cent a year, banking on continued high demand for automotive aftermarket products. The German company made its presence felt in Myanmar in 2013, boosting the company’s sales revenue in the country by 70 per cent from the previous year.

The growth rate went down to 18 per cent in 2014 and though double-digit growth was maintained in 2015, Andre de Jong, Bosch Group’s chief representative for Myanmar, sees room for continued growth above the group’s average global target of 3-4 per cent a year.

“Last year, there was a big slowdown for some industries due to the elections. Despite that, we achieved double-digit growth. On average we will grow, because we are investing more time, more resources, more energy, and it will accelerate our growth,” he said at an annual press conference last week.

“For countries like Myanmar, anything between 18 and 70 per cent or even more, I will be happy,” he added.

According to de Jong, Myanmar continues to be an important growth market for Bosch in Southeast Asia. The firm anticipates increased demand for its products and services due to the growth of Myanmar’s automobile and industrial sectors.

Growth in the past year was boosted mainly by demand for the firm’s automotive aftermarket products and power tools for the construction industry. No sales figures were available, however.

Looking ahead, Bosch is boosting business through local employees. Training started in 2012 and the latest effort took place last week through experts flown in from Singapore. Almost all of its associates are locals.

“At Bosch, we believe that natives understand the needs of the domestic market best. We will continue to attract more Burmese talent, both within Myanmar and other countries, to join our dynamic team,” de Jong said.

In Myanmar, the company focuses on four business sectors: mobility solutions, industrial technology, consumer goods, and energy and building technology.

Mobility solutions are the main contributor, with sparkplugs and car batteries among the best-selling products, particularly after a car service centre was opened in Yangon last year. Another service centre was opened in Mandalay in March and business expansion to other cities including Nay Pyi Taw is being explored.

“We want to penetrate the market as fast as we can. There is big room for development, especially in energy and infrastructure. We are happy to be here to explore and develop the market. We want to be known in every part of Myanmar,” he said.

In July last year, Bosch launched the Drive and Control business division in Myanmar to offer solutions for the mining, hydropower, oil and gas, construction, agriculture, cement, and food and beverage industries.

The construction boom also offers room for growth for its energy and building technology sector. Video surveillance and access control, conference systems and fire alarms were the main drivers that enabled Bosch to secure and equip key private and governmental building developments, including airports, hotels, museums and commercial buildings.

De Jong said Myanmar was a relatively new market for Bosch home appliances, with particularly great potential for its washing machines.

“We believe that establishing an early presence in a market that is starting to open to international brands will reap benefits in the long term, especially with a |focus on the gradually growing residential projects in Myanmar,” he said.


Source: Myanmar Eleven



NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.