Automotive Battery Industry: Abroad

O The global battery market is about $50 billion US, of which

roughly $5.5 billion is allocated to rechargeable (secondary)
batteries. The growth is estimated at 6% annually
O A new generation of energy-hungry electronic devices, such
as innovative battery running cars & two wheelers will drive
the growth.
O Alkaline will dominate the primary battery market. Others
primary batteries will be lithium and zinc-air. Primary
batteries can be stored up to 10 years and have much
higher energy densities than secondary batteries.
Automotive Battery Industry: India
O The Battery ndustry in ndia, which is worth Rs.1,600 cr, has a
market size of 2000 million units. The ndustry Focus highlights the
classification of the battery market and the product portfolios of the
domestic players in ndia.
O t also throws light on the recent developments like cheaper
Chinese products being available and the market for rechargeable
batteries growing at a rapid pace, which have affected the industry
players.
O The alkaline battery market only accounts for 5% of the total
market. This is because the alkaline battery costs twice as much
as a traditional zinc carbon battery.
O ndian lead acid battery market is estimated at Rs 21 billion
(automotive at Rs 13 billion and industrial at Rs 8 billion)
eading Brands in this Industry:
Oitsubishi
OAcura
OAutocraft
OAlliance
Oazda
OEverStart
OEnergizer
ODuralast
ODiehard
OHonda
OOptima
OTrueStart
arket Needs & Customer
Requirements:
O Car arket:
O aintenance Free or requires low maintenance
O Consistent Power
O Leak proof
O Full safety as it contains acid
O Easy service centers availability
O Easy replacements (if required)
O Long Life i.e. Durable
O %ractors & %ruck arket:
O As their Requirements are Bit different from the car market.
O Longer life
O Higher cranking power
O Leak resistant
O Low on maintenance. Special hybrid alloy minimises water loss
O Extreme vibration resistance. Ribbed container withstands temperature
extremes and shocks/ vibration damages
O Factory filled and wet shipped
O Better corrosion resistance with superior plate design and weld systems
O No electrical shorts, with glass matt lined enveloped PE separators
O !roduct Characters & Offerings:
O Batteries
Passenger car batteries: Features
O Factory charged and sealed; so, no charging or topping required
O Consistent power output
O Withstands heavy loads
O Greater acid volume above the plates (safety reserve)
O Charge-eye indicator
O Side wall ribbing
O Polyethylene envelope separators
O Offerings:
O Faster charging
O Better short-trip resistance
O Long-life
O mproved cyclic loading
O 30% higher starting power
O inimizes the danger of ignition from external sources
etaiIs About the Company:
O The Bosch Group is a leading global supplier of technology and
services. n the areas of automotive and industrial technology,
consumer goods, and building technology, some 285,000 associates
generated sales of 47.3 billion euros in fiscal 2010.
O The Bosch Group comprises Robert Bosch GmbH and its more than
350 subsidiaries and regional companies in over 60 countries.
O f its sales and service partners are included, then Bosch is
represented in roughly 150 countries. This worldwide development,
manufacturing, and sales network is the foundation for further growth.
O Bosch spent 3.8 billion euros for research and development in 2010,
and applied for over 3,800 patents worldwide. With all its products
and services, Bosch enhances the quality of life by providing solutions
which are both innovative and beneficial.
!roduct Characteristics offered by
BOSCH:
O BOSCH Silver Perfect aintenance Free (PF) Battery
comes with breakthrough Silver alloy technology. This
means it offers greater electrical conductivity and better
corrosion resistance, substantial increase in service life, and
a totally maintenance-free battery experience.
O The sealed maintenance-free battery has optimized grid
geometry and contains calcium silver alloy that offers
excellent cold start performance, improved power
consumption during charging, greater starting power and
longer service life.
O The water consumption is much less than conventional
batteries because the labyrinth for gas condensation and
return to the battery minimizes the loss of water.
SuppIy Chain anagement At BOSCH:
O !urchasing at Bosch:
O As a supplier, what do you expect from Bosch? A wrestling match?
We think not. Because in the bitter fight for prices and conditions,
nobody emerges as the victor in the long term. At Bosch, they
always see the supplier as their partner.
O They are demanding, especially where quality is concerned. Then
you will certainly want to be involved in simultaneous engineering.
Because they involve the supply partner very closely in
development and continuous improvement.
O They reward above-average performance with an honor which you
will be hard pressed to find elsewhere: a Bosch preferred supplier.
This status will grant you the right to have a front-row seat - not
just when new orders have to be filled but also when it comes to
participation in special further training programs.
!referred procurement arket:
O Bosch has suppliers across the globe. The address of a supply
partner is no longer of major importance. What is important, is their
quality standards for example. Admittedly, they are strict but they
are the same everywhere. Anyone who meets them, gets his
chance. Even in new procurement markets.
O They have plants in many countries across the globe and are
therefore purchasers in those countries.
O But what about the regions in which we have no production
facilities?
O The have set up special purchasing offices in 8 locations across
the globe to make initial contacts with potential supply partners.
%hree IeveIs of purchasing:
O Supposing you wrote a letter to "Bosch Purchasing division, Stuttgart,
Germany" and supposing it arrived. But would it arrive at the right address for
you?
O You can do business with Bosch anywhere in the world, in an office just
around the corner from you or on another continent entirely. You can do
business on three levels:
O 1. For material fields, which several divisions require, the Corporate Sector
Purchasing controls procurement worldwide for the entire Bosch Group.
O 2. Other material fields are purchased by one of our 16 divisions for several different
plants. Several plants are attached to each such division.
O 3. Other goods are purchased directly in the country by the plant.
O %his 3-IeveI structure has one major advantage for us: your contact is
present in the very pIace where the decision about pIacing an order is
made.
ogistics at a GIance:
O No matter where in the world we look onto Bosch, logistics is an elementary
process in all plants and divisions at three different levels:
O Procurement logistics ensure that materials are regularly ordered from our supply
partners and forwarded to our plants in due time.
O Configuring the material flows within the plants and providing the production and
assembly lines with just the materials they need is the responsibility of production
logistics.
O Distribution logistics is responsible for keeping our promise of on-schedule delivery
to the customer, for example in ensuring direct delivery, on a quarter-hourly basis to
the automotive manufacturer's assembly line.
O The image of a common thread does not only apply to the material flow but
also to the planning process over the entire supply chain - starting with the
receipt of customer call-offs and determining market demand, continuing with
the generation of production orders and information to our suppliers of
material requirements, ending with the management of production and
dispatch.
O Bosch products move things - hydraulically, pneumatically, electrically,
electronically or mechanically. ntelligence and inventiveness are the
driving forces here. ovement is only possible in connection with
permanent progress - a guiding principle for our development engineers?
Definitely.
O This is just how our logistics specialists also define movement. Providing
materials where they are needed, on time, is a challenge in itself given the
complexity of the supply chain today. For us, a solution is only acceptable
if it also keeps costs and environmental pollution as low as possible.
O How do they achieve this? They normally order ex words "loaded", i.e. we
have the materials they require collected from the supplier's premises.
This has the advantage of allowing them to bundle orders. They work
together with highly-qualified contracted carriers here and give them
responsibility for entire regions. Networking between Bosch, the supplier
and the carrier is managed via WebED, from the call-off to the goods
receipt.
O Bosch's emphasis on lean production and improvement of flow, "our vision
is to eliminate the warehouse, and to make the warehouse a moving
one."
Innovation:
O The innovative strength of the Bosch Group will continue to
be a decisive asset in the future. n 2010, having also
maintained a high level of spending on research and
development throughout the economic crisis, we increased
R&D expenditure by some 6 percent, to 3.8 billion euros.
O At the end of the year, approximately 34,000 associates
were working in this area worldwide. We further
strengthened our global research network by opening an
additional research center in Singapore, with operations in
Shanghai and Tokyo. And in order to pool our research,
advance engineering, and process development activities,
we also acquired a substantial area of land close to
Stuttgart.
ChaIIenges of !urchase & Iogistics:
O Having substantially reduced inventories during the crisis by pursuing
systematic inventory management, our purchasing and logistics teams
faced the tough challenge of managing the transition to rapid economic
recovery in 2010. Given the prevailing sense of uncertainty, particularly in
the first half of 2010,it was crucial to ensure we could always meet our
delivery obligations, but without accumulating excessive inventories.
Overall, we spent some 24.1 billion euros on production materials,
merchandise, supplies, services, and machinery in 2010. n 2009, our
purchasing volume had dropped to 17.5 billion euros.
O The purchasing and procurement organization also had the formidable
challenge of dealing with the scarcity of electronic components, as
companies in this industry had significantly scaled back capacity during
the crisis. Throughout 2010, we continued to pursue our strategy of more
closely pooling purchasing requirements, information, and expertise as
well as taking a consistent line in the supplier market, with purchasing
activities geared to specific categories of materials.
O We are further expanding the existing cooperation among divisions in
the Automotive Technology business sector. We are setting up a
global, cross-divisional purchasing organization for purchased
automotive parts. This organization will be based in supra-regional
centers.
O We are also realigning indirect purchasing operations throughout the
Bosch Group.
O This realignment affects logistics and development services, but also
impacts on machinery, systems, equipment, and tools. Our aim is to
merge the purchasing offices of the various divisions, regional
organizations, and plants under one central umbrella organization.
O However, purchasing associates will still be present locally in the
various regions, thus maintaining close proximity to internal
customers and the local procurement markets.
Battery arket of Bosch:
O The biggest technical challenge in electromobility is energy
storage the battery, in other words. t needs to be
powerful, durable, robust, and cost-effective. n a joint
venture with Samsung SD, Bosch has been developing
such batteries since 2008. This joint venture, SB Liotive
Ltd., supplies battery cells and systems, and gained two
major customers in 2010. n November 2010, the joint
venture started series production in Ulsan, Korea
O Sales revenue amounted to EUR 47,259 million (previous
year: EUR 38,174 million). The Automotive Technology
business sector accounted for EUR 28,097 million (previous
year: EUR 21,716 million) of this total