Press

• Stability maintained despite falling sales
• Business aided by increasing trend for repairs
• Clean, energy-saving products fuel growth

Despite a challenging year in 2009, The Bosch Group in Belarus sees growth opportunities in the region for 2010.

Bosch’s consolidated revenue in Belarus in the 2009 fiscal year was 28 million euros, 55 percent less than in 2008.

The decline was mostly a consequence of the global situation in the automotive industry and a local downturn in construction  - both sectors having considerable significance for Bosch Belarus.

However, despite falling sales, the company managed to keep its leading rankings in its main lines of business.

 Bosch implemented a number of measures to reduce costs at all levels, as well as increase flexibility in human resources policy and in relations with clients and suppliers.

A reduction of working hours substantially compensated for the under-utilization of capacities caused by the decrease in sales, and it enabled the company to avoid layoffs.

Anticipating future market growth, Bosch increased its staff in Belarus to 39 persons, up 11 percent from that in 2008.

“We were able to retain more than 90% of our clients,” said Rene Schlegel, Bosch Group representative Russia, Ukraine, Belarus and Kazakhstan.

“This is a very good result, since such crisis-tested relations are the basis for restoring sales when business starts to recover. It was crucial for us to maintain available goods for the general public at client’s retail outlets.”

Leveraging trends towards repair and energy-saving products
The sharp reduction in demand on the Belarusian car market negatively impacted sales of new, original equipment auto parts in 2009.

At the same time, the trend towards increasing repair of used cars emerged, benefiting Bosch service. Despite economic difficulties, the company continued to supply the Minsk Motor Plant (MMZ) with fuel systems fulfilling Euro-3 and Euro-4 emission standards, and unveiled a new, cheaper fuel system that also meets European standards.

In 2009, there was a considerable drop in the power tools segment due to lower activity in the construction industry. Nevertheless, the Bosch Service Center for warranty and post-warranty service of power tools noticed increased demand in this segment.

One of the most promising segments today in Belarus is the development of energy-saving heating equipment.

This is important both for the state and private sectors as it allows users to spend resources more efficiently. Compared to 2008, sales of Bosch heating equipment – especially for individual cottages and houses – have increased.

Slightly optimistic outlook
Bosch estimates the prospects for further development in the region with some optimism. “Growth in our region will resume, but it will not reach 2008 levels soon,” Rene Schlegel said.

“We expect that in 2011, our business as a whole will return to the level of 2007, and in 2013-2014, will again be on the level of 2008.

Growth rates for each division are naturally different. In business fields where we have a market share of less than 20 percent, there is more growth potential than in areas where we already occupy a large share of the market.”

In 2010, Bosch will concentrate on further consolidating its significant market shares in the power tool-, auto parts and heating equipment markets.
 

For additional information, contact:
Julia Golubtsova, OOO Robert Bosch 
Tel.:  +7 495 937-04-02   
Fax: +7 495 937-71-99   
e-mail: julia.golubtsova@ru.bosch.com 

May 11, 2010