Undeterred by the current political situation, Robert Bosch (Thailand) Ltd yesterday announced an aggressive target to achieve another year of double-digit growth in Thailand.

Paulo Ferreira, the newly appointed chief executive of Bosch's Thai subsidiary, believes there is still plenty of room for the Germany-based company to outperform its competitors and grow faster than the market here, which is still expected to outpace that in many other countries in the region.

Bosch is also expected to reveal soon a new investment project that will expand its manufacturing facilities at the Amata Industrial Estate in Rayong, he said.

"We plan to invest more, but it's still premature to disclose the details. Next time we will invite Amata Corp [operator of the industrial estate] to jointly announce the plan," said Ferreira.

Bosch has two factories at the estate, producing braking and diesel systems. The group has another plant in Prachin Buri, manufacturing household appliances, including washing machines and dishwashers. This facility exports much of its production.

Bosch's Thai turnover last year was about Bt3 billion, one-third of which was derived from its facilities manufacturing products for the original  equipment markets and exports, and two-thirds from domestic sales.

Local units achieved growth of 10 per cent in 2005, slightly lower than the average growth of the Bosch group in the Asia-Pacific, which expanded 11 per cent.

The Portuguese-born executive said Bosch's strategy for this year was to continuing growing faster than the local market and seizing more share from rivals, even though the market has become more competitive.

"My policy is growth," said Ferreira, citing Bosch's "cutting-edge technologies, premium product quality and focus on the user".

Bosch invests about 7 per cent of the its worldwide turnover of ¤42 billion (Bt2.0 trillion) in research and development. Last year, the group came up with 2,803 patents.

Among Bosch's Thai domestic sales, the after-market automotive, power tool and securities businesses contribute roughly equal shares to the company's sales.

The company also owns the local Blaupunkt Car Multimedia business, but this was relaunched last year and still contributes little to the group's local turnover.

Unit head Sunil Thomas said Blaupunkt would focus on its "premium brand" strategy of introducing only products with cutting-edge features. It will also continue to deliver through selected dealers.

"And for our OEM business, which comes under the responsibility of a unit in Penang, towards the end of this year we will have good news," said Sunil.

The OEM - original equipment manufacturing - segment is one in which the firm sells its multimedia systems directly to car assembly plants.

Yongyuad Whangprayoat, general manager of Bosch's local after-market automotive business, said the firm would introduce more new products encompassing all of its 10 core business-product groups this year, and would give major emphasis to the Japanese-car segment.

It will expand its distribution channels accordingly towards the users of Japanese automobiles and motorcycles.

Japanese cars account for more than 90 per cent of total new car sales in Thailand.

Bosch employs 450 people in the Kingdom, including 300 at its two Rayong factories.

Pichaya Changsorn

The Nation