Mumbai: Bosch Power Tools, a division of the 36.4 billion euro Robert Bosch GmbH, Germany, is planning to expand its operations to acquire a 40 share of the power tools market in India by 2006.

Launched in India in 1993, the company has outlined localisation of manufacturing and entry into the DIY (do-it-yourself) segment as its business strategy to expand its footprint in India.

The power tools market in India is worth Rs300 crore and is growing at around 12 per cent per year. In 2003, Bosch Power Tools India clocked 32 per cent growth in 2003 with gross sales of 20 million euro (INR100 crore).

Bosch, the world leader in the power tools segment, generated 89 per cent of its turnover in 2003 from, overseas markets. India has been recognised as one of the drivers for growth for Bosch Power Tools, with its emphasis on infrastructure and construction. The company has already started assembling user-specific power tools at its manufacturing facility at Bangalore.

According to Uwe Raschke, president, Robert Bosch Power Tools, "We intend to expand our market share with above-average growth rates, focusing on Europe and Asia. To do so, we want to continue our combined strategy of internal growth and external take-overs. We expect an average annual growth rate of three to four per cent in the medium to long run in the world market for our products."

"We are convinced that power tools will remain a growing market where our division will generate further profits. It is our goal to extend our position as the innovative leader on the world market and to remain the top choice for our customers - dealers and end users," he added

Bosch and MICO will invest in the Indian market to secure future growth. Says Dr Albert Hieronimus, MD, Motor Industries Company Limited (MICO), "We will focus on manufacturing and localisation in the coming years. We will also integrate MICO's production facilities with the world-wide production network of Bosch Power Tools division."

The company plans to continue its innovation strategy by developing both completely new products as well as helpful improvements in the established power tools range.