- The volume of sales in 2020 reached almost 130 million euros
- The company focuses on digitization, online solutions in sales, service and training
- Development of Bosch's innovative business in Ukraine
- Focus on corporate social responsibility
In 2020, Bosch, the world's leading supplier of technology and services, achieved sales in Ukraine at the level of almost 130 million euros, thus surpassing last year's result by 7%. "2020 was full of challenges for Bosch in Ukraine as well. However, we managed to complete it much better than expected, mainly due to the rapid transformation of our business online and effective communication with customers and employees in the conditions of the "new normal", said Vitaliy Bulda, CEO of Robert Bosch Ltd, at annual press conference of the company in Kyiv.
The company quickly switched to a remote work format, providing employees with everything they need for this, ensuring seamless communication with customers and launching new services and online training. Regarding business development in the current year, Mr. Bulda noted: "The first quarter of 2021 was successful - we are seeing sales growth compared to the same period in 2020. The result of the first three months exceeded the growth of the market in key segments and industries. Our main goal is to maintain this positive sales trend throughout 2021 and continue the implementation of projects that were suspended in 2020." At the end of 2020, more than 350 employees worked at Bosch in Ukraine, including employees of non-consolidated companies.
Development of Bosch business lines in Ukraine
Sector Mobile solutions (Mobility Solutions), which is represented by the subdivision Automotive spare parts and equipment (Automotive Aftermarket), ended 2020 with an increase of almost 29% compared to the previous year (data including battery sales). Such a positive result was contributed by the replenishment of the auto equipment line. The brand's product range includes a compact battery tester BAT 115 for servicing batteries and a universal stand for calibrating and adjusting driver assistance systems DAS 3000. Also, starting in 2020, the Ukrainian market will feature batteries with AGM technology for freight transport, as well as high-performance spark plugs for Bosch EVO gasoline engines.
In January 2021 networks Bosch Auto Service the world turned 100 years old. In Ukraine, this information occasion was marked by the victory of branded service stations in the all-Ukrainian rating-action "The best car service of Ukraine 2020". "As of December 2020, the Bosch Service network in Ukraine included 100 service stations, including 16 Bosch Diesel Service stations. The result of independent audits of the quality of customer service has improved compared to the previous period," comments Volodymyr Matusevych, Head of the Automotive Parts and Equipment Department.
Business sector Energy and Construction technologies (Energy and Building Technology) in 2020 continued to develop and actively implement projects, involving the latest technologies. In 2020, the department showed a significant increase in sales compared to last year. Active activity took place in the direction of fire safety, namely the provision of leading security systems in office buildings and shopping centers in Ukraine. The IP fire alarm system was installed for the first time. The company implemented background sound systems in retail stores and video surveillance systems for office buildings and administrative premises. Bosch's innovative analytical systems based on AIoT solutions – a combination of artificial intelligence (AI) and the Internet of Things (IoT) – help predict unforeseen events and prevent accidents, thus enhancing the protection of life, human health and property preservation.
Department Heating systems (Thermotechnology) in 2020, it also increased sales volumes, and the number of implemented projects in the industrial sector increased by 30% compared to the previous year. One of the landmark projects of the department was the successful launch of the municipal boiler house in the city of Horishna Plavna (Poltava region). This is the largest boiler house in Ukraine with a capacity of 100MW, built on highly efficient heat-tube boilers manufactured by Bosch.
In the first quarter of 2021, the department is focusing its activities in four directions: industry, communal economy, residential and commercial construction. Forecasts for the project business for the current year are positive - already at this time there is a significant increase in indicators relative to the similar period in 2020. As of the end of April 2021, more than 40 projects using Bosch heating systems are actively underway in Ukraine. "Since 2020, we have been observing an increasing trend in the demand for condensing equipment in residential construction. Construction and development companies increasingly use modern condensing boilers, which significantly reduce the consumption of natural gas and electric energy and reduce the amount of harmful emissions," comments Ihor Khazan, head of the Heating Systems department.
Unit Industrial and mobile technologies of Bosch Rexroth maintains a strong position on the market in Ukraine. 2020 was a difficult year for this direction, but despite this, the company managed to maintain sales volumes at the pre-crisis level. A partial decrease in customer activity was felt, especially in the second half of the year. The most active were customers from the agricultural sector, especially in the segment of spare parts for agricultural and construction machinery.
Unit Power Tools represents the business sector in Ukraine Consumer Goods (Consumer Goods). In 2020, the division faced a significant decrease in activity in the construction industry. But overall, the year was relatively successful. The reason for this was three main factors: user-oriented innovation, multi-channel strategy for target groups and consistent brand management. Long before the pandemic, the Bosch Power Tools division began to apply agile methodology throughout the entire production chain, in which the needs of users are at the center. This has helped bring more than 100 new products to market successfully. The key event of last year was the expansion of the range of cordless tools for professional users by 30 items.
Course on digitization and online solutions
The pandemic has significantly affected business methods. The new circumstances require compliance with all requirements for the protection of employees and customers: social distance, remote work, the transition of most services to online. At the same time, consumers have a need not only to purchase certain goods, but also to receive quality consultations and service.
At the beginning of 2020 Bosch Training Center launched a series of product webinars dedicated to the brand's products. During the year, teachers of the center conducted 45 technical trainings on car repair, in which about 500 people participated. Today, the program of the Bosch Training Center includes more than 50 courses for specialists with different levels of training. The innovation of 2020 was interactive online simulators that allow you to test your knowledge in the field of car diagnostics and repair. All online trainings take place in the mode of real communication in a modern studio equipped with all necessary technical means. This creates the effect of virtual presence in the Training Center.
Unit Power Tools introduced an online repair appointment service that is relevant in quarantine conditions. This ensures the safety of customers and employees of the service center and makes it possible to quickly repair the tool. In 2020, more than 97% of orders were received through a special portal, where the customer has the opportunity to place orders independently XNUMX hours a day. In the application, you can also view information about product availability and delivery times.
Development of innovative business in Ukraine
In April 2021, the development project was launched innovative business of Bosch in Ukraine. The company constantly analyzes the possibility of introducing the latest technologies in the Ukrainian market. The new direction is aimed at bringing AIoT-based products and services to the local market.
"We consider the Internet of Things based on artificial intelligence to be a key technology of the future," says Oleksandr Simakov, manager of the development of innovative projects at Bosch in Ukraine.
It will be one of the first Bosch AIoT products that will be available on the Ukrainian market Phantom. This is a whole intelligent ecosystem for managing electricity consumption based on artificial intelligence. Phantom finds applications in Industry 4.0, where it is used to improve the overall efficiency of equipment (OEE) of any type, as well as in distribution electrical networks, for example, to detect electricity theft.
"In Ukraine, Phantom has significant application potential in many industries, such as retail, commercial and residential, industrial production, textile, pharmaceutical industry, agriculture and many other industries. In addition to energy-saving recommendations, Phantom provides real-time information on critical indicators, equipment maintenance, efficiency and early warning of malfunctions. Managers can use Phantom data as a basis for setting goals, tracking performance, analyzing and improving on an ongoing basis," says Oleksandr Simakov.
Focus on corporate social responsibility
Each year, Bosch implements an average of 15 social projects in Ukraine. During the fight against the coronavirus infection, the company pays special attention to supporting friends and partners who are at risk. In 2020, Bosch Ukraine financed the repair of expert-class ventilators for the intensive care unit of the Okhmatdyt Medical Center. With the beginning of the spread of the infection, Bosch provides means of protection against the coronavirus infection for the social protection center in Pereyaslav and the boarding house for children with special needs in the Ivano-Frankivsk region.
Support and care for employees is always a priority at Bosch. That is why since the start of the quarantine, the number of corporate motivational programs has increased: personal transfers to/from the office for employees, testing for the presence of coronavirus infection, organizing vaccinations, online sports training. From February 2021, the company's employees had the opportunity to test themselves by participating in the preparation for the Bosch triathlon. Classes are mostly online and outdoors under the supervision of professional trainers. "People are behind the success of every company. Implementing a large number of external social projects, we always take care of the company's employees," says Mr. Bulda.
Bosch Group: outlook for 2021 and strategic course
The Bosch group of companies achieved positive results in 2020 despite the coronavirus pandemic and successfully started the first quarter of 2021. "Bosch survived the first year of the coronavirus pandemic well," said Volkmar Denner, Chairman of the Board of Robert Bosch GmbH. However, the company expects another difficult year, which is primarily related to the relevance of pandemic risks. To develop new business opportunities amid the technological and environmental changes currently taking place, Bosch is combining the Internet of Things (IoT) with artificial intelligence (AI) and focusing on electric mobility. "We are one of the winners in the transition to electric mobility, and we are significantly expanding our software development business, connecting it with artificial intelligence," Denner said.
Global efforts to combat climate change are driving the development of electrification and "green" hydrogen. Electrification opens up new opportunities for Bosch in several business areas, as it requires solutions not only for the electric drive of cars, but also for the electric heating of buildings. In the technology of power units, electromobility is becoming the main focus of Bosch's activities. Fuel cells turn hydrogen into electricity - Bosch develops both stationary and mobile fuel cell solutions. From 2021 to 2024, Bosch plans to invest one billion euros in fuel cell technology.
Bosch continues to implement its plan to achieve its own climate goals and has already reached an important milestone: in the spring of 2020, more than 400 of its companies around the world received the status of climate neutral. This has already been confirmed by independent tests. As a result, Bosch became the first global industrial company whose offices no longer leave a carbon footprint. Bosch also aims to reduce CO₂ emissions along the entire product chain, from procurement to the end user, by 15% by 2030 compared to 2018 levels – a reduction of 67 million metric tons of carbon dioxide emissions.
