Bosch Limited (500530) Earnings Call Transcript & Summary

Welcome to Bosch Investor Meet 2022. From the Bosch management, we have with us today Mr. Soumitra Bhattacharya, Managing Director, Mr. Guruprasad Mudlapur, Joint Managing Director and Chief Technology Officer; and Ms. Karin Gilges, Chief Financial Officer. Bosch management will first make a presentation and followed by -- we can have a Q&A session. In between, we'll have a coffee break after the presentations. And there are some statutory statements. Please note that all the contents of this presentation are only for information purpose. Most of the contents are internal Bosch estimates based on assumptions and the experience of the management. And hence, we intend, but cannot guarantee to be absolutely accurate. Any opinions and the expressions in this presentation or the contents of this presentation are subject to changes without notice. The presentation should not be construed as legal, tax investment and other advice. Thanks. Over to you, sir.

A very warm welcome to all the participants here. Thank you for taking time out. Luckily, during monsoon to date hasn't rained as much. And it's really a delight to have you here physically after a couple of years, we had a break. So we are looking forward to a very engaging discussion today. And between me and my colleagues, you already got the introduction from Mr. Annamalai Jayaraj. We will try to take you through some key messages. And of course, we will share with you what we see as the market also shared with you about our parent or sister companies, but most importantly, Bosch Limited. So my name is Soumitra Bhattacharya. And along with me, I have both Ms. Karin Gilges, who's the CFO. She's taken over recently. In the interim, I was doing the job and also, we have Mr. Guruprasad Mudlapur, who is the CTO as well as the JMD. So between the 3 of us, we will not only present but also address your questions and look forward to a very interesting dialogue. The break is your choice, by the way. We've created a break just for hygiene reasons. But if you want to continue amongst us the presentations, we can do that. So these are the topics that are being presented. I'm not going to read it out for you. There is a flow. There is a sort of handover and takeover amongst ourselves. But also, there are -- we've tried to structure it in a manner that could be more easily understood and also shared with you. So let me give you a look back on Bosch Limited '21-'22. Can we have the AV, please? [Presentation]

Thank you. By the way, this year, 2022 is a special year for Bosch because we turned 100 years of Bosch in India, and I'll come to that a little later. So my first slide is about Bosch Global, Bosch India and Bosch Limited. So if I decode this slide and give it to you in simple key sentences, our parent is around EUR 80 billion. So you multiply that 18 to 80 is very simple, around INR 640,000 crores turnover with about 4 lakh employees, 230 manufacturing locations. Very potent the parent is perhaps the only company in the world where 94% of its total equity. It's a private limited company, by the way, is owned by the Robert Bosch Charitable Foundation. And the foundation owns it but doesn't run the company. And 5% is with the Bosch family, but they don't, in any way, see to the daily business and 1% is with the Robert Bosch Stiftung. So a very unique structure where the executive management report to Supervisory Council and 94% of the equity owned by the foundation. The company, Robert Bosch, has been over decades, putting in about 8% to 10% of its turnover in CapEx. This is also very unique and about 8% to 10% on R&D and about 6% to 8% on CapEx over decades. So it being a private limited company being debt-free worldwide and putting in these amounts on CapEx as well as on R&D indicates that the company looks for being invested for the future. And that's why the tagline is Invented for Life. Below, you can see the 4 big pillars or divisions that Bosch, our parent, is in mobility solutions accounts for approximately 60%. In India, this is about 85%, you can see in Bosch Limited. And then you have industrial technology, Consumer Goods and Energy and Building. Our second biggest in India is 11%, what you can see. Now Bosch India has 15 legal entities. And we are in practically every area, including mobility, consumers, Bosch Home Appliances, BSH is a separate legal entity. And within the automotive or within the mobility part, there are certain units, which are inside Bosch Limited, for example, diesel and gasoline, which is now called the Powertrain is within Bosch Limited, but Bosch Chassis, Bosch Automotive Electronics or Bosch Electrical Drives or even Automotive Steering is outside the listed company. Many of the sister companies have interlinkages with a listed company. For example, the Bosch Automotive products greatly go through for all areas on ECUs, which are for powertrain, for example, either for gasoline or diesel go through Bosch Limited. For example, 2-wheelers, which is also a part of mobility, partly goes through Bosch Limited, but partly, which is linked to Bosch Chassis is not within Bosch Limited. So we have a strong interlinkage of the sister companies. Some parts of our -- their product solutions or systems also go through Bosch Limited. And Bosch Limited, of course, has the powertrain solutions, which is diesel, gasoline, hydrogen, electrification and aftermarket, which is the AA, Automotive Aftermarket, a great part of the 2-wheeler, building technologies, power tools, which is the consumer goods. And of course, I mentioned building technologies. I'm not going to tell you about the macroeconomics. Actually, you know it better than me. I can only say perhaps the interlinkages between what's happening in the world and India. Today, in India, we have -- we are placed in a sweet spot relative to the world of -- in a very, very turbulent and volatile world to perhaps take initiative and get our act right with the rest of the world on very clear basics. In my view, the governor is doing a very good job in trying to contain the inflation. Our inflation is yes, high but not as high today as what's happening in the world. Europe has -- after the second world war has not seen as higher inflation as it sees today. So there are many pros happening for India in a very difficult world. Of course, we know the impact of Brent and crude on our economy. Of course, we know that we have relative to what we had planned gaps in our current account. We also know that the RBI governor had to sell sizable chunks of our ForEx reserves to contain their dollar. So you know that well enough. But what happened on 24th of February with the start of the Ukraine and the Russia war. And after that, the series of things that unfolded, including the latest events on what's happening between U.S., China or the China-Taiwan matter are of great concern, which will affect the whole world and also India. And yet amongst all the nations relatively, and India is not the only country is one of the few set of countries, which has a possibility for us to actually use this as an opportunity window. And in the mid and long run, strengthen our economic situation. And how do we convert this into what we call as the automotive outlook is something I will share with you. So let's look at the automotive outlook. These numbers are an indication of what we look as the future. And I've broken it up into on the left side, the type of segments, let me starting with pass cars, heavy commercial vehicle, like commercial vehicle tractors, 3-wheelers and 2-wheelers. So all of us know that the peak of the Indian automotive market happened during the fiscal year '18, '19 or the calendar year '18, which away way you want to look at it. So pass car '22 calendar year and here the years that have indicated a calendar year, that's how our parent looks at it. And I've not put the fiscal year. So pass car at the forecast for '22 looks more like crossing the peak of '18 and going towards 6 million pass car. We estimate that in an e-mobility plus case, that means a very positive outlook towards e-mobility, that there's a possibility of a 30% share of EV. And when I say EV, it means all types of EVs, not just battery EV or Pure EV, it could be hybrid, it could be mild hybrid, it could be battery electric vehicles, whichever type of EV a 30% possibilities there. If you remember 2 years ago when we were discussing, we were saying that this is around 25% and it could go to 30%. We're looking at a more optimistic scenario. And this would amount to a CAGR of around 4.6%. Heavy commercial vehicles, which had peaked at 480,000, we don't see it coming back for multiple reasons. You have better roads, tolls were taken away. You have higher loads being transported, axle loads increased and you have railroad competition, et cetera, et cetera. And then, of course, also, there will be in the years '28, '29, '30, some amount of change of the vehicles also, and my colleague will talk about it on what this hydrogen has an impact on heavy commercial vehicles. So we look at a good growth and -- but we don't see crossing the peak. Light commercial vehicles, which have a chance of electrification, especially the sub-1 ton, 670,000 will be touched this year, and we'll go on to approximately 9 lakhs as we see and has a very good chance, especially for the intracity for EV to come in and pick up. And we are talking of about a 20% EV from practically a zero base currently. Tractors had already shown the peak already 1.5 years ago. The peak of 9 lakh tractors. So India is the largest tractor manufacturer in the world, but small tractors, 35 horsepower to 50 horsepower, which we see are likely to continue as a majority. The bigger ones will still be on a minority. And we have crossed that and it's already at a very high volume, and we expect it to be in the bandwidth of INR 10 lakhs to INR 12 lakhs, so 1.2 million. And it also has a good -- and later will come to the content per vehicle because we have to look at volume, we'll have to look at content per vehicle. And then what we'll talk about is the addressable -- target addressable market, TAM, convert that. So 3-wheelers had an impact on COVID, and that 1.25 million is going to take a long, long time to get back, and that's what we are saying 29, 30 for it to get back and 3-wheeler electrification possibility we see along with 2-wheeler electrification. And here on 2-wheelers, the peak of 25 million. And don't forget the entry-level 2-wheeler costs have gone up. When we had the 25 million vehicles, the cost of 2-wheelers and especially the entry level, the 100cc, 125cc was totally different from what you have today. And also you had the fuel injection chain system where earlier we had carburetors. So content has changed 2-wheelers costs have changed. Ownership, therefore, has not become as strong, and we expect the 25 million to be crossed sometime around '25 and then to move forward. But also 2-wheelers will have a decent percentage of electrification. So what does this mean in content per vehicle? Because you have to look at the volumes, you have to look at the mix within the volumes. And then you have to look within the mix, how much remains at powertrain possibility, what could be the possibility of electrification. And then what does it mean in content per vehicle. Now these content per vehicle are the indicators in terms of X for industry. So sometimes the content from BS-IV to BS-VI has not really shifted in a major way. If you look at from the port fuel injection from BS-IV to BS-VI or 1.1x or the GDI or the CNG. But when you look at the CRS, that has pretty much changed. If you remember in the February 2020 Auto Expo, had indicated that pre-COVID, that was before the COVID happened in March. Pre-COVID Bosch had acquired around INR 23,000 crores worth of acquisition for BS-VI. Even stated after COVID that INR 23,000 crores had got converted to anywhere between INR 18,000 crores and INR 19,000 crores post-COVID because it's all about demand at that time. So there was a very good acquisition that we did, and acquisitions normally are taken for a period of 5 years, excluding the year that is being discussed. So you can say 5 plus 1, 6. So in the same way, our acquisition trend, and later I'll come to that is at a very solid base besides the BS-IV to BS-VI. BS-IV to BS-VI Bosch model has had actually handheld the industry. And India did it at the fastest level where Europe had done in 8 years, India did in 3 years. Now if you look at the BS-IV to BS-VI for the LCV and the HCV, you have also a multiple of HCV 1.6x and 1.8x content. Again, the exhaust gas treatment got added. There were other elements that have got added. And in case of TREM 3A to TREM 4, TREM 5, and in TREM 5 when you go to CRS, so currently, a tractor has an in-line pump. And when that goes in, you can even have a 5-plus X content change. So a, the legislation roadmap and the emission roadmap in India, which actually changes the technology. And I remember about 7 years ago, we were 17 years behind Europe. And today, we are at about 4 years behind Europe as we speak, and it's narrowing, has a change and the Indian consumer has been quite adaptive to the price changes. And you yourself can see it in your own buying pattern of cars, what you would have thought of 5, 7 years ago, what band and today, what bands they are being released and what you're buying it. So the first one was volume. This is content per vehicle, and Bosch is positioned well within the industry on the content per vehicle for improving the content, including having its portfolio and expanding our portfolio. This results in target total addressable market or TAM. So the TAM here is shown by value. First column is in 2022, what is the TAM? Then the same TAM by value in 2029, '30, whatever you want to look at, and then the overall TAM CAGR between '22 to '29. So the first one is diesel. The first one on the top left. The second one is petrol or gasoline. The third one is CNG. And the fourth is battery or electrification. So here, what you need to read is CNG as the base. Let's take CNG as a base, yes? So if you look at TAM by value, where we know CNG will plays a role, but not a significant one, if that is x, then diesel by value would be 10x, petrol will be 4x. And here, we are talking about the whole market. Don't think of only pass car and utility vehicle. And then this would be 6x. So here, you can also see when you look at the diesel, we have also put the CAGR based on ICE for pass cars. Then on ICE for heavy commercial vehicles on the right, then for light commercial vehicles and for tractors and for 2-wheelers. And there's a line in between that clearly indicates that there are 2 separate things we are talking about what does it translate to. So the first part, if I go to the left side, you see a negative of CAGR for the petrol because the 4x of '22 will translate only to 4y based on when you make CNG, but electrification on a very low base will be 20y by '29. So you have to look at how the multipliers are happening, but you must also remember what the base is with CNG as a base. So while diesel will grow steadily, but not as fast or as high the difference delta on '22. instead of a 10x, it's a 7.5y. However, we see that because of the mix change, the 4y will actually be, in the terms of a CAGR, a slight negative. And here you can see, I've also written CNG is considered the base only for comparison, and all these are due to the drive shift due to the EV and also what I've indicated here is that there's a low base of EV on TAM in '22, which all of us know is 1%. And the CAGR for ICE is indicated in the values. So you have to read this, #1, on what is the current situation in '22. Then you have to see how in some of the areas, electrification is having an impact. Remember, our impact, we said is 30% as the best case for EV, for pass cars and utility vehicles, not for others. And then you have to see that this is an addressable market. So if I add up now in simple terms to the summary, what is the volume which was shown in the first slide? The second slide, what is the content per vehicle? There's some sound happening. Sorry, something I pressed by mistake. Okay. We lost our colleagues, I'm sorry. So I'll just finish. So in summary, the 3 elements that I talked of was volumes as we see between '22 and '29; the content per vehicle, which is shifting based on legislation and emissions; and this volume into content per vehicle, how it gets then addressed into total addressable market. Summary is Bosch is well positioned to retain its position on both technology, which you later see from my colleague, as well as acquisitions for not only our core or what we call as revived core, our adjacencies, but also the new business areas. And this has a strong linkage also with the technology roadmap that our parent plays and already the acquisition, which we have a very strong umbilical cord between our parent and us, and we do it at arm's length in a very fair manner, and then we apply it for innovation and, of course, affordability. So the picture of the vehicle is changing into pace: personalized, automated, connected and electrified. And here, you can see this is something that our parent has been working for many years already. For example, on electrified, our parent has been spending EUR 400 million to EUR 500 million for the last 10, 11, 12 years. Later, my colleague will share the acquisition value currently that our parent has. I told you the investments are already nearly EUR 5 billion till now on electrification and climbing. But we are very strong. You must remember that Bosch is also very strong, not only in the world, but also in India on software. So Bosch is good at components. Many of you call it a component company. But it's not really a component company. It's a systems and solution company. So it's good at components, it's good at systems, it's also good at solutions. Because today, a car is defined not only by the mechanical parts, but greatly driven by electronics, sensors, and most importantly, software. And Bosch is strong in each of these elements. So whether it's the personalization of a vehicle, which now you see more and more. ADAS, which gives you automation, and of course, in India, you don't need autonomous, but Bosch is already at Level 4 and on the road, can go to Level 5. Strongly connected cars are becoming very, very strongly connected, you call it a phone on 4 wheels nowadays and, of course, electrification. So in summary, I would request you to look at the slide in 2 parts: A, pace is connected all over the world. Our parent is very strong in it. We have already a lot of strengths within pace, but most importantly, we draw on our parent's strength to use what is tried, trusted and proven through acquisitions also for India. One change that you should note, the pace of electrification in the world will not be similar in India. I'll give you the reason why. If you take Euro 7, which is the change of norms for ICE, that's applicable in '27. Now most of the OEMs in Europe are looking at should we go for Euro 7 or should we go for electrification? Because it doesn't make sense to put investment upfront for Euro 7, and then within 2 years, then go for electrification, because they also have a cutoff for the electrification and vehicles to be electrified. So in India, ICE will still remain dominant for quite some time. And the pace of electrification of what is happening in Europe is very likely not to be followed in India, unless there is disruption of statutory laws, which I honestly don't anticipate because it's a country of a strong park and you can't make such changes. So quickly, this was one part on the matter on pace and perhaps the slight difference between what's happening in Europe, and more importantly, in India. 2-wheeler business, I mentioned to you, 25 million, which is currently at 19 million going towards crossing the 25 million in the year 2025, has several elements to it, and Bosch is also strongly entrenched in the 2-wheeler business. We have strong electrification projects in 2-wheelers. Some of them who launched we already talked to you. We don't talk about it until the launch has happened. Worldwide, the supply chain crisis on semiconductor is still going on, including overall supply chain. But for 2-wheeler, this is even more applicable. We did have a bit of a lull in 2-wheeler because of the entry price growing up and the demand not being high, but growth will pick up. Raw material price, later you'll hear from my colleague, Karin Gilges, is a major issue, not just for 2-wheeler, for everything. Automotive companies, and including the OEMs, the pressure on costs, what they're having, the Tier 1s are having the equal pressure because prices of raw material -- prices of electronics and prices of logistics have seriously gone up. So there has to be a win-win between OEMs, Tier 1s, Tier 2s of what you can absorb and what you can pass on. So Bosch has a very clear system, including Bosch Limited, of what we should and we will recover. So it's a very clear game plan. And then, of course, in case of 2-wheeler, from '23 to '25, you are aware of the OBD, and if that shifts, that will be a 2-year. We don't see a major hit in our business, but there could be a shift from '23 to '25. And finally, fuels will also play an important role, including flex fuel, again, for which we have solutions on the fuel part 2. In Bosch Limited, I covered powertrain a bit, but now I'll come to aftermarket. This is a very fast-growing business. The last 2 years has grown in very strong double digits, and we expect this year also to be an equally good year. From nearly 125 Bosch Car services, we are up to 400. And by 2025, we should go towards 1,000. So we expect Bosch's analytics through diagnostics to be a USP because, today, you can't have a mom-and-pop car repair shop anymore. Gone are the days that you can solve it just with, as we say in Hindi, [Foreign Language]. So you need not just electronics, but you also you need very strong analytics and tools and diagnostic tools, which Bosch Worldwide has. By the way, last year, Bosch completed 100 years of the Bosch Car Service worldwide. So this is one area which we will strongly look at, but more importantly, automotive market with its [indiscernible] strategy has improved its reach, has improved this coverage and also its entire product and services portfolio. So this is one area where we will continue to grow. And we are -- we did a tie-up with Autozilla. This is an e-commerce space, which allows you to know inventory, sales, purchases and also the location. And this we are also using effectively. Our Power Tools, which is also a market leader, where we want to also grow by 5 percentage points on market share, is also doing very well. And we have a very clear focus to go towards the MPP range in India. We are at the all ranges of the HPP, we are partly also at the high end of the MPP who wants strongly be entrenched in the MPP in India. We want to have a very clear focus on Cordless Matlab Bosch. Cordless is not commonly used in India, but the productivity efficiency can improve tremendously. And of course, we are making our whole ecosystem like automotive market, extremely digital. So, A, as a market leader, we have strengthened our current policy. We see a very strong drive in Power Tools. Our Chennai factory has been voted out of its 4 years of existence 3x the world's best factory. It's an all-women factory, by the way, and that helps. And we have a further localization plan for our Power Tools also make in India in [indiscernible] Building Technology is a small part of Bosch Limited. It's broken up into these 4 areas, and we are now looking at localization opportunities because we clearly see a lot of imports we do for this from different countries, including China. And the government is really discouraging China origin products. So we are looking at further localization opportunities. We are also looking at inorganic partnerships. So you will see Bosch Limited doing more and more inorganic partnerships also for the future. Talking about inorganic opportunities, we have done quite a few. You will remember, while, of course, SUN Mobility was invested through Bosch Netherlands, but it has been given the Bosch India executive team has a responsibility, my colleague, Guruprasad Mudlapur, is actually front-facing that with SUN Mobility. But if you see the many other names, we have bought minority shares in multiple start-ups or small companies. And we will continue to invest, but also in the future, do not be surprised if we also invest in mid or larger companies because we are looking for synergies, we are looking for partnerships and in each of the areas. It could be in the powertrain area, it could be in the aftermarket, in the Power Tools or in the building technologies, any of these areas, or even in the digital ecosystem. ESG. This is a very interesting thing. There's a saying, if you are good, you have to also talk that you're good. And we made a mistake of not talking about it. You just see the scores on the left what was earlier of ESG. Bosch Limited was rated at 55 [indiscernible] with E at 44; S, as in social, at 56; and G, governance, at 65. Not very good. And where we are today is the score has improved from 22.6 to 13.2, lower the better. My colleague, [ Rishit ], is here with me, and Rishit is one of other team members who is driving this. And today, Bosch Limited has also improved its rank from 60th out of 209, to 4th out of 165. We have our annual report, and from Page 52 for the next 30 pages, we have described what our ESG policies. And we can, of course, to the investor community and all we can give you the e-link, [ Rishit ], we can keep a note those who want and share. So we have a very strong ESG focus. We were doing it, but now we are also stating it. We are one of the few companies in the world globally who became carbon neutral in 2020. And in India, also Scope 1 in 2, we are carbon neutral. Great Place To Work. You can't do any of these things for the future if you don't have good people and motivated. I remember 4 years ago, when we started, we were at the median. Today, about 1.5 months ago, they announced that Bosch Limited is in not only the top quartile, but also amongst the best places to work in auto and auto component companies. So this is something that we are quietly proud about. But what is most important is we are creating a high-trust, high-performance culture, and we are creating this push and pull because the world is changing, and we have to adapt with the world. The average age of Bosch Limited today is down to 35 and dropping. The average age of a software company is 28 and dropping. 30th June, we opened our smart campus. Those of you who have been to Bangalore, in the heart of the city, we have the 75-acre campus. We've invested in the last 5 years, INR 800 crores for this campus. 10,000 Boschlers, roughly 1/3 of the total Boschlers in India, we have 31,500. We'll work out of this. If we look at the floor space from Mumbai standards, we should actually put 120,000 people in it, including self space out. We will not do that. Of course, you can ask ROI, ROCE, return interest, yes, but we will not do that. That's Bosch. We are creating a great place for people to work. It's university-styled, it's green, you can work from anywhere within and it's vibrant. And the great part is it's one of the smartest campuses to date, not just in Karnataka, but also in India. This was inaugurated by the Prime Minister, and you perhaps have heard him speak about Bosch. He's not really inaugurated M&Cs, and he called Bosch a company which has German engineering and Indian energy. So next up is my colleague, Karin Gilges, who will share with you the financials. I'll end by saying only 3 things. One, this is a very volatile world, and India also is volatile. However, India is in a relatively sweeter spot for us to grab this opportunity, and therefore, also the mobility world or the other industries. Second, Bosch in India has been here for 100 years, and we have a very strong tie-up with our parent, who gives us unqualified support, and of course, as a listed company, with high principles of governance at arm's length. We will continue to bank on them, while having -- and we also, in India, have the largest R&D center in the Bosch world outside Germany. And third, Bosch Limited has been transforming and transitioning into this new world. And we will retain our strengths to rewire our core, we will continue our journey on adjacencies, but we are very strongly also transitioning and transforming for the new age business, which details further my colleague Guru will speak of. So over to my colleague, Karin Gilges. Thank you very much.

Good afternoon, ladies and gentlemen. Thanks for joining our Annual Investor Meeting today. And of course, also a warm welcome from my side. I would like to take you today through the finance and business update. And I would like to start with the last year's revenue from operations. You can see compared to the previous year, 2021, we had a growth of 21%, but please keep in mind that we are coming from a very low base. Because as all of us know, we were hitted very hard by the COVID all over the world. And therefore, this 21% is a very good growth, but of course, based on the low previous year. Nevertheless, in the year '21, '22, we have almost reached our peak of 2018, 2019, and therefore, quite good year in the last year. In EBIT, we see an increase of 38% for the relevant time period, which ended up by 9.6% of the total revenue. And as like our parent, as my colleague Soumitra already mentioned, we are going ahead in investing into our future with INR 6.3 billion in R&D, INR 4.1 billion in our plants and machinery, as well as you just saw it in the last slide, state-of-the-art technology center in Adugodi, Bangalore. And last but definitely not least, we will go ahead, and I will show you this later on if we're coming now to the year '22. The year '22 is characterized by a steep increase in raw material. And as you can see in the graphs, prices for flat and round steel are 3x higher compared to 2020. Besides this challenge, we faced major disruptions in the supply chain, for example, in semiconductors, and the uncertainty of the global economical effects like the Ukraine war in Europe. The increase in crude oil elevated the freight costs and the cost of the entire supply chain is at an all-time high currently. But material costs are also influenced by changes in legislation with the change from BS-IV to BS-VI. We had subsequently a mix in our product portfolio, and therefore, also in the material costs. Of course, we go ahead with further localization in the upcoming years to adapt to these new frame conditions and optimize our recovery from the customers. If you look at our dividend, you can see that we are maintaining a consistency in our dividend payments in the last 5 years. The Board of Directors in the Board meeting in May '22 have recommended a dividend of INR 210, which includes a dividend of INR 100 per share for 100 years, Bosch here in India. So the total dividend payout for the year '21, '22 is 51%. And as in the previous year, of course, because we are on a lower profit after tax. If you look at our liquidity situation, we have -- our liquidity is quite solid and quite stable. We are adequate funded in our investments plans, while remitting the dividends. And also, if you have a look at the cash flow, we have a very robust cash flow, so overall, a solid liquidity situation in the Bosch Limited. If we now look in the year, in the first quarter of the fiscal year '22, '23, again, if we compare it with the previous year or the quarter of this year versus the quarter of the last year, then, of course, we see a high jump of 45%. Nevertheless, please keep in mind the COVID year '21. If you compare the last quarter, April to June '22 to January to March '22, then we see good increase of 7.1% in the revenue. We have closed with operating profit EBIT of 10.9%, 12.3% in the [indiscernible] and 9.4% in the [indiscernible]. So if we look at the revenue in the quarter April to June '22, then we had an improved supply of the semiconductors which helped us to come or to fulfill the market demand. And we had especially a very good demand and delivery into the tractor market. If you make an outlook for the overall year '22, then our current sales forecast showing a revenue growth of more than -- or roughly 15%, we are optimistic to achieve a healthy EBIT margin. Again, we go ahead in the investing into the R&D with INR 5.8 million. We will have further capital expenditures with INR 5.1 million and we are also going ahead in investing in our new business like digitalization, electrification and hydrogen with INR 2 billion. So overall, the outlook of the year '22, '23 is positive. Nevertheless, if you look at the overall frame conditions, of course, we have to watch out what is happening in the material market, what is happening all over the world. But nevertheless, positive and cautious on the risks which could occur. Thank you very much. And either we have a break or we can go ahead with the next colleague.

So good evening, everyone, and welcome to this meet. It's really a refreshing change to have people face-to-face. So at least gives us an opportunity to interact with each other even beyond the presentation. So I'll take you through technology aspects of where we are and where we will go with our business at Bosch. So I'll give you an overall perspective of where things are headed and then take you through the next steps. So if you imagine a world some 70, 80 years ago, we tend to plot technology curves in S-curves. So technology starts, it ramps up and then it sort of saturates. And we can say, if you look at the plot in the middle, we are probably, for the last 70, 80 years, we've been largely on an S-curve, which is pretty stable, are now slowly declining with regard to combustion engine business or the car or the vehicle as we have seen so far, which is a typical picture you see on the left. But if you now look at where we are and look further into the future, we start to see the emergence of a new S-curve, which will lead us to changes, which are pretty exponential for the auto world, which will drastically change the way we look at things, which will bring in new technologies, which will bring in a confluence of multiple technologies. For example, some of the things Soumitra talked about in terms of personalized, automated, connected, electrified. So there are many of these things happening. And some OEMs have started to be early adopters of this globally. One good example is Tesla, which has led the way on the second S-curve already for some time now. But a large part of the OEM base today, especially also in India, is still on the primary S-curve and looking at how to transition to the secondary S-curve. So it's still very early days. At the same point, we should remind ourselves that if we look at a global vehicle park of maybe 85 million vehicles and look at the time point in future, like 2030, we will still have maybe 45 million, 50 million vehicles on the primary S-curve still. So there is still a lot of life left on the primary S-curve. And while the secondary S-curve is where all the excitement is, but there is a lot of money still to be made and a lot of technology upgradation also happening on that, and I'll talk a little bit of both. So Soumitra talked about this. I won't go deep into this. And there are multiple elements happening all at once. The personalization of the vehicle, which is now starting to more look like an extension of our mobile phone in the mobility world, automated driving, which is becoming very, very feasible at some point of time in the future, while simple driver assistance features start to come in now. But at a point of time very soon, we will have much more highly automated driving features coming in. We, of course, already have a highly connected car. Lots of new technologies will come in, including technologies towards cybersecurity and so on, which will enable us to have a much more connected environment between cars, between infrastructure. So this is something that will happen quite a lot. And all of this, the primary base to carry multiple technologies here, will be the electrification. So on an electrified base, you start to have new technologies introduced with sort of very low legacy. So that's the big advantage of where we are headed on the new S-curve, and that's the exciting part here. So the vehicles of the current, as we have now, may not have all sorts of new features introduced. They will, of course, have some of them coming in. But at some point of time, it's the electrified platforms that will carry most of the new features as we see today. I will very quickly take you through what Bosch does in general about -- also in India about the personalized automated and connected parts, not necessarily at Bosch Limited, but we've been leading this technology space overall as Bosch in India. We have already several design-ins. If you look at -- I can talk about it because it's already out in the open, the Mahindra XUV700, the personalization, the AdrenoX platform is Bosch. So a lot of these things start to come in, which bring in new ways of experiencing for -- okay, so I thought you were going to stuff something in my mouth. I have a bad throat. So I don't know, I thought maybe he realized that. Okay. So a lot of these things start to come in as we move forward. So in terms of the automated space, we might think India will lag behind. But there are several levels of automation, and at least the first 2 levels already start to come into Indian vehicle base. Good examples are all the driver assistance features, which are very, very useful, automated parking or assistance towards side views. So a lot of these things are very useful, and they will come into Indian vehicles as well. And we already have several design-ins with Indian OEMs on this. Connected is another space, which will not escape the automotive world. Cars get highly connected, lots of communication happens both ways. Content coming into the vehicles and content going out of the vehicles. And for automated driving to happen, connected cars are an absolute must. So in that sense, we start to do a lot of these things. The reason I talk a little bit about this is also because many of these things have interlinkages to what we also do at Bosch Limited. And when we have these domains picking up, we also have multiple things going off from Bosch Limited. Of course, all the electrification and topics around this, which will be largely the focus of what I talk over the next 10 to 12 minutes will be centered at Bosch Limited, and I will get into the details of that. So Bosch has always believed in continued greening of the environment, the mobility environment, and we have looked at how to clean the current powertrains, which can be improved emission norms, so as we go forward. We've also driven the hybrid wave for a long time. We are one of the global leaders of hybrid technologies for vehicles. And of course, we are now working very heavily on electrification. Soumitra already talked about how we have invested over the last 10 years, close to 500 million year-on-year. And that is an investment of over EUR 5 billion, EUR 6 billion into electrification technologies for Bosch globally. And since 2018 already, we realized this is a way which is coming into India, and we started to invest in India as well. So both in terms of basic technologies for electrification, making electrification technology is robust for India, customizing safety aspects towards the Indian conditions. Every aspect of this, we start to focus also in the Indian context. Very quickly, I do not want to ignore the fact that we will have a very large park of vehicles even in 2030, which will be largely combustion-related. So there will be quite some advances in that. And globally, Bosch has lots of technology in this, be it in terms of natural gas engines, be it in terms of flex fuel or in terms of specific customized technologies towards off-highway or other segments. So we have the complete portfolio of technologies, which we will offer. We have already started to talk to all the tractor OEMs. We have acquisitions there as well, and we will drive the wave as we go further on combustion technologies, too. Now let's focus a little bit more on battery electric vehicles, and another special topic of mine, hydrogen, and why we believe that's also going to make a significant impact here. So on battery electric vehicles, just to give you a context, this is, by the way, based on publicly available information, dates could move plus and minus a little bit here and there. But by and large, we believe these are correct. OEMs have already announced a sort of end of design for ICE vehicles. So they've all said, by 2030, roughly centering around that timeframe, some a couple of years earlier, some a couple of years later, what happens with regard to electrification and how they intend to switch over and to what extent they prefer to switch over in terms of whether it's a combustion technology continuing or electrification coming in into the auto world. And we are tracking this very closely. We do work with global OEMs everywhere, and we have full awareness of what's happening. And this is what helps us develop technologies at the right pace and for multiple OEMs as we go forward. So whether it's a complete battery electric vehicle or combination technologies of hybrid plus battery electric vehicle, this is a wave which will come, and we are very, very aware of this and are already working with multiple global OEMs. In fact, our global acquisition on electrification today exceeds EUR 22 billion, I think. So it's a very large amount of acquisitions we already have on electrification. What normally drives adoption of technologies is the aspect of legislation. And Europe, if you have observed recently, legislated or approved legislation to end combustion engines by 2035. So that's sort of a clear indication that they will have no -- for the sale of ICE vehicles after 2035. And OEMs will, of course, follow that very, very closely. And while this has not been made so clear in the other parts of the world, but plus or minus a few years here and there, the same kind of trends will happen. But we don't see that yet in the Indian context. And like Soumitra already mentioned, we do not yet foresee that kind of a clear mandate coming in. But there will be other drivers which will drive technology introductions, and we are very, very closely watching and working to make that happen. So this just gives a legislation roadmap on when -- what the government mandates in the Indian context, both for safety and for powertrain. And this clearly shows how legislation has largely propelled growth in India, and we'll continue to drive this growth. So there is still a lot of life left, and I keep repeating myself on this with regard to ICE technologies, and this is something that will continue. But of course, at some point of time, there is an end to that and there is a need to prepare ourselves for electrification, and we are doing everything to get ahead of the curve there. So in terms of being on the second S-curve, I think we've spotted this change maybe 10 years ago, 12 years ago, and we've invested extensively to be riding that second S-curve very, very well. Some global drivers for electrification and specifically in the Indian context. Three main things we track and we believe are going to make a difference. One is the total cost of ownership. The second one is how the overall EV ecosystem develops in India and, of course, in every country around the world. But last but not the least, in the Indian context today, it's largely the subsidies and the incentives, which drive electrification. And take this element out, there is not going to be a sale of EV vehicles today. And that's something we, as a technology company, are very well aware of and trying to look at how technology can mitigate this, how can we have better technology at the more optimum prices and at what point of time would this really help take over as we move forward. We believe, and Soumitra already talked about it, he took away a lot of what I wanted to say through his words, but I'll give it anyway. We believe, in a good e-mobility plus scenario, about 30% of vehicles sold in the world would be electric. And maybe even a little bit more. A lot of this is maybe not so much limited by technology, but also limited by the amount of investments that can come into this segment. So there is a huge amount of investment required. And some of you who track the Gigafactory developments for lithium-ion or other battery technologies that come in will realize the extent of investment that has to come in. So both have to happen hand-in-hand, and that's one reason why, we believe, especially in the Indian context, this has to go together. Because we can't simply from 1 day to another switch over to a totally new ecosystem and then make it all work. But we believe, on a very good basis, 30% electrification in India is a very good feasibility, and we are very well prepared for that. So in terms of our global product portfolio, we have everything from low voltage all the way up to high voltage covering segments from eBike. By the way, we are the global leader of eBike powertrain systems. EBike, meaning bicycles which are driven by electric batteries on electric motors, right all the way up to powertrains for heavy commercial vehicles. So the complete range from powertrains to energy management systems, to energy management and control, system control, vehicle control systems, the whole range of portfolio is available within Bosch. And the whole range of portfolio is now being offered to Indian OEMs with or without adaptations. So of course, Indian OEMs also require some level of adaptation, and we start to do that locally. In terms of level of integration, probably Bosch is one of the most unique companies which goes all the way down from semiconductors right up to the final product that can go directly into a bus or a vehicle or cycle. So in terms of electronics, we cover the entire range. We have a very large portfolio of electronics, and we take the entire breadth of it, right from semiconductors all the way up. Of course, we still are, maybe as a Tier 1, one of the largest buyer of semiconductors, but that just shows the scale at which we operate. eAxle is a typical product which Indian OEMs have been looking at very, very intently. This is a combination of a motor and inverter and all the power electronics that drive the motor and the electronics. And this combination of these 3 gives significant efficiency advantages as a unique one-box solution. This is something which you see in today's vehicles already on the Indian roads. And we will offer these into OEMs, and we are discussing with several of them as we speak now. We are also very, very strong in battery systems. We've got a full portfolio of 48 all-traction batteries. we are a leader in hybrid battery technologies and we offer the full range as well. And yes, maybe just to wrap it up, hydrogen is really upcoming technology. So as more as a teaser today, but also to tell you that this is something which should interest a lot of you because there are big announcements happening, billions and billions of dollars of commitment even in the Indian context happening towards building a hydrogen ecosystem. And why do they do that is because of this picture. Basically, if you look at what we have as a diesel or a gasoline ecosystem, petroleum-based ecosystem today, which sort of started 80, 100 years ago, that is the kind of an ecosystem that has to come up for hydrogen as we move forward. And that's a massive challenge, massive opportunity and the big guys very keen to invest in this. Bosch has spotted this already quite some time ago as a technology, which will drive specifically long-haul trucks and certain categories of vehicles, and we believe this is very well suited also in the Indian context. And we have started to talk to several OEMs in India and several ecosystem players who are coming into generation of hydrogen. So we have technologies which help generate hydrogen through electrolysis. We have technologies which distribute, help distribute, store and, of course, a whole range of technologies which get into the vehicles to offer hydrogen-based mobility, and I'll very quickly talk about 2 flavors of this. So there are likely or there will be 2 variants of hydrogen vehicles. The first one is a fuel cell electric vehicle, which is the more global norm, which is likely to come up in the future. There are several companies already in trials, several pilots running all over the world. And Bosch is probably the only company which offers an extensive end-to-end portfolio of hydrogen-based components here. So on the extreme right, you see a one-box solution, we call it the Twin Box. This is a 200-kilowatt power plant, as you can call it. This is basically replacing the engine in a commercial vehicle. So you plug this in into a commercial vehicle, it is replacing the complete engine. And at the other end, you have the hydrogen storage. So storage is also essential in a vehicle. And if you take the entire range, it covers everything that is required to make hydrogen vehicle come alive. Of course, there are other elements to our vehicle, but by and large, the Tier 1 level component and even much more than a Tier 1 level component is what's on offer here. We also see the emergence of a new class in India where hydrogen could be an injection source into combustion vehicles, so as hydrogen engines. And this is something where India seems to have taken a lead in the global context because we simply have a very huge park of combustion vehicles, which can be simply converted to take hydrogen, plus, of course, have direct OEM fitments of hydrogen vehicles as we move forward. So we have end-to-end injection systems for hydrogen, and we already are talking to several OEMs on this. Extremely good interest in this technology, and we also have the first acquisitions on this project today. So we have several projects running globally with Nikola, with Cellcentric, Qingling in China, maybe we are the only one who has large amount of hydrogen pilots running globally. And so it's easy for us to bring in all the technology into the Indian roads here. And we have the local acquisitions on hydrogen engine as well already. So just to wrap it up, we cover end-to-end portfolio on the new scope. Specifically on electrification, we cover everything from low voltage, all the way up to heavy commercial vehicles, both at a battery electric vehicle level and that fuel cell or hydrogen level as and when the technologies can come in. We are very focused on building these technologies for the Indian market and in line with what our customers locally want, including the right levels of localization as we move forward. So be rest assured that we are leading the second wave as well.

Yes. We'll have a coffee break for 15 minutes. We'll assemble at 03:45 for a question and answer session. [Break]

We can now go on for Q&A session, and it will be for about an hour. We'll end at 4:45. [Operator Instructions]

So my name is Viraj. I'm from SiMPL, Securities Investment Management. Just a couple of questions. Broadly on the -- one is on one of the slides which you talked about, where you showed the TAM for different vehicle segments between 2022 and 2029. Given that we have other group subsidiaries who are also in the similar space. Just trying to understand how much of that value addition will kind of come within the listed entity vis-a-vis other group entities and the kind of CapEx we would have to entail to capture that value addition in the listed entity. So that is one.

Our CapEx in Bosch Limited is anywhere between a low of INR 250 crores, INR 300 crores goes up to INR 500 crores, INR 550 crores here. And for the Bosch in India, it's anywhere between a low of INR 400 crores and goes up to INR 700 crores, maybe INR 800 crores, yes. So the CapEx thing is completely dependent on the market requirements. We are driven completely by market and advanced planning. The listed entity, I've already shown you what it contains. The listed entity contains many of you were talking, contains the powertrain. And some of you asked the question, so about the electrification hydrogen that will be in the listed company. And of course, we spent CapEx for not just powertrain, but for automotive aftermarket for power tools, yes. And we have building technologies and two-wheeler as a front facing to the customer. So these are the listed entity and the other parts are in different legal entities.

So the reason I asked is...

But I can't give you now beyond this, a further breakup of...

No, I understand. What I'm trying to get at is we also made a commitment to participate in the PLI. So we talked about INR 200 crores...

The listed entity has applied and been approved along with a couple of other Bosch legal entities, but the listed entities were very much applied in the PLI.

Okay. So basically, this indicative range is including the investment in advanced automotive products, right?

Yes, naturally. Whatever we put, it is for everything, including the advanced automotive technologies.

Okay. Second question is broadly on the margins. Just to understand over next, say, 3, 4, 5 years, pretty long-term horizon. So if you look at last year or 2, we had a couple of multiple impacts, as you talked about in the past RM ForEx volatility, you had transfer pricing impact related to traded growth and then the product mix. So if we're just trying to understand the traded growth and the related transfer pricing impact, if you were to kind of understand how contract pricing has arrived at because other purchases more on CIF [indiscernible]. So are we the one who kind of bearing the impact related to freight or -- and similarly in regards to the ForEx or the raw material. So any volatility in regard to that? Is it kind of bored by the manufacturing entity or we are the one who are bearing it? Is there a back-to-back arrangement with the OEs for recovery of same?

Okay. Part of your question is a leading question towards guidance. So I'll avoid the guidance part of it, and I'll give you the non-guidance answer. Bosch has very good contracting systems with OEMs, and it depends on which OEM bought, but we have very comprehensive OEM contracting and very strong process-oriented worldwide, but also for India. Our CFO's presentation contained that we have a very strong focus towards recovery on RMI and ECI and also logistics cost. So that's, again, on a win-win situation. The OEMs can't recover everything. We can't recover it. But we have a very strong method and a very clear intent of also focusing on that part. That was a part of the presentation. So there's a second part to the thing. The third part in terms of what you asked as margins. Margins are a direct function of what you do at the marketplace. So we focus very strongly on getting the right acquisition. I told you BS-IV to BS-VI. I also want to assure you that other than BS4 to BS6, our acquisition book this year is at an all-time high. So we have a strong acquisition book for our whole mobility business, which includes the listed company. And margins, as I mentioned, are a part. Our CFO's presentation also stated, yes. Just to give an example, we have started also investing additionally for new businesses. So you saw INR 2 billion for new businesses. So we are also further investing for the future, specifically.

Just last question was on that as well. So the investment which you talked about, INR 200 crores in this year. Typically, when we say about investment in new age businesses, these are in what form. So what is the nature of these? Are these purely tech transfer payments to parent or these are like tied to specific customer SOPs? And how will we go about measuring the efficiency of this [indiscernible]. So that...

These are investments which we are doing for hydrogen, electrification, digital. We believe very strongly that we have to put project houses, which we did already 3, 4 years ago and put also money people, resources, competence. Because if we don't build it, you don't get prepared for them. Maybe a couple of sentences from Guru, your head in electrification and hydrogen.

So we did talk about this offline. So I don't have...

He's checking me. He's checking me out whether I'm going to say the same thing because you spoke with him separately but that's a good one.

I'm just trying to...

But we normally going to speak the same thing.

That's a good thought. Thank you.

No, we should also joke a little bit here. It becomes a [indiscernible] That's good. And he didn't tell me what he spoke with you.

Yes. So this is Sonal Gupta here from L&T Mutual Fund. Finally, good to meet you in person. So just a couple of questions. First, I mean, like now we are sort of -- we've seen the BS-VI transition. I mean, in some segments, you're starting to see electrification. But I mean, just from a 3, 5-year perspective, from Bosch in India and from the listed entity perspective, what are your key goals and objectives? Or what is your key strategy here other than -- I mean, obviously, we'll all be moving along with the market growth and how the market shifts. But over and above that, how are you trying to direction the company?

We follow greatly the principles of our parent. And if you look at what our parent says, parent says, we are invented for life. So the parent has always looked at -- first of all, the parent is a private limited company. So we do the responsibility of a listed company but don't act like just a public listed company looking at quarter-to-quarter. So we invest for the future, always in advance, which we have done in the past, and you can see it from in-line pumps to common rail systems to now what you will see in the electrification and hydrogen. Second, we draw a lot of -- we don't reinvent America, but we draw a lot of inputs from our parent who have already been there, done that. You could see it from his -- from Guru's presentation, of the portfolio, the depth and the width and what our parent has done, including acquisitions, and he even shared one slide on hydrogen, I think. So a lot of feet on the ground. So it's not theoretical. No, I think you showed 3 acquisitions worldwide. And India, you already saw one Ad and India map that tells you something also. So our very clear focus is to remain a very serious player for not just core -- if you're good at something, you have to retain that. So that's why we have rewired the core. I told one of your colleagues, you may not know, but Bosch Limited has reduced its headcount by 40% to 50%, yes, very quietly and in the Bosch way of taking care of people, et cetera, et cetera. So rewired the core, also focus on adjacencies and transition for the transformation of the new business. So all 3 elements we are doing. So we want to remain the strong player that we have been in the core and the rewired core. We have got into adjacencies based on all the emission road map Guru has shown and where we are relevant. I gave you an indication on the TAM, which has to be read volume which is market into content per vehicle. We are strong on content per vehicle. And then we talked about realistic dates of electrification versus breaking news. So you have to understand electrification will happen and hydrogen will happen, but at realistic dates. And we have the technical knowledge, but we will also be entering always for many of the at the right time. Otherwise, many companies will burn huge amounts of money. So very clearly, we want to retain our leadership position in mobility area, but also I shared with you, aftermarket, we are the leaders; power tools, we are the leaders; building technologies, we are not the leaders in a fragmented market. They're building technologies, we are playing on the high HPP, but that's a small business. And we want to go to the NPP and I shared that.

Got it. And sir, so just a data point question. In terms of -- I mean, like I think in FY '17, just in terms of your OE business, I mean, could you sort of tell us broadly like now, where are you in terms of your diesel gasoline mix, like I think in FY '17 used to be 90% diesel today broadly where if any sort of indicator number?

You have to look at this from what has happened to the market. India went from a 15% diesel up to 48% and now has come down to 20% on the UV and pass car only. Other thing digitalization is high. So yes, we have had very high strength in diesel because we came in diesel in 1953 with the in-line part, yes. Then we came with single cylinder, we came with many things. So diesel boom at 48% naturally had a positive impact on Bosch India but also Bosch Limited. 18% or 20% has a certain impact. But we are very strong on ICE, including gasoline. We came gasoline relatively later, but now we are already 15 years, yes. 15, 18 years already, not 69 years, you can't compare. But again, strong in a market where we have a pretty good market share. And we have a very good portfolio on electrification, hydrogen he shared it. So this is ICE, this is -- Bosch has worked with flex fuels in different countries. I think Guru can talk a little bit about flex fuels and Latin America and also you can talk a little bit about CNG. So we are there. But if flex fuels and CNG, I'll give it to him.

I think I was just trying to understand what's the sort of broad powertrain revenue split...

Powertrain, we will follow what the market's happening. So you have to really look at the market broken up into those 5 elements. Heavy commercial vehicles will be diesel until hydrogen and hydrogen ICE comes in a smaller way, and he shared already, we are in it. Like commercial vehicles will be diesel, gasoline, we are both and electrification. We are on those elements. 3-wheelers, we are in and when the electrification comes, we have that. Two-wheelers, I think we have spoken about. And pass car, there's been a very detailed discussion. So percentages are going to be driven by market, not by us. Acquisition books this year is at all time high.

Just one, a very simple question. I don't know, is it possible for you to simplify for us. I'm sure you must be measuring your company even in terms of the content per vehicle kind of thing. So if you put it, say, last 5 years because FY '20 to anyway base is not probably right base, FY '19 might be the peak of the industry versus where we stand today and with kind of technology change what Bosch Limited is doing? What do you think your aspiration in terms of the content per vehicle over the next 5 years by 2029 or something like that, that will give us some idea in terms of how to look at the Bosch Limited. Because if I look at historical number of, say, last 5 years or last 8 years, or last 10 years, the growth has been a little bit subdued, maybe due to the variety of reasons. But going forward, over next 5, 10 years, you are rightly positioned, technological advantage, actually, we all agree. But how one should finally translate you into the scope of work, the content per vehicle for Bosch Limited?

So I gave you an indication on the content of vehicle of technologies that we are linked with of what is changing in the market. And Bosch's content per vehicle can be very much be looked at in a similar way here. So basically, content per vehicle is actually improving, increasing, number one. The part that you're asking critically is, again, I think indirectly is acquisition. It's not content per vehicle. I don't know because that's what you have -- are you hinting at content per vehicle or on acquisition?

You mean acquisition of companies?

No, not acquisition Acquisition of orders.

Yes. I mean combined basically...

Yes. So when you look at TAM, which is the target addressable market here or the total addressable market. We have a situation changed on emission norms, which I clearly showed BS-IV, BS-VI, TREM-III,TREM-IV, TREM-V of actually maintaining the higher content per vehicle, number one. Number two, we want to always meet market growth and better rate, and that you can't do unless you have the right acquisition or unless you have the right content per vehicle. And of course, finally, you have to have the ability to play in these markets, which we have shared. So we have shared with you ICE and we've shared with you -- guru has shared hydrogen and electrification.

Yes. Basically, what I'm trying to understand is that when you put that volume number, like you have also mentioned in our interaction that don't look at MSC volume, look at the overall tonnage, the haulage, am I right? So basically, what is more important is the revenue growth of the industry, the underlying automotive industry rather than looking at just the volume number because volume has no meaning, correct? If I put it from that perspective, then Bosch India growth in last 5 years, last 7 years kind of number is not that encouraging number compared to your technological leadership because you are #1 when it comes to technology, correct? So I'm not going by the volume, as you rightly said, look at the haulage, correct? So internally, I'm sure when you are doing within your company, you will be presenting the haulage volume growth for the last 5 years and projects is for next 10 years. Rather than saying to the marketing guys, hey, guys, industry is growing at 2%, we are happy with 3%, definitely not, am I right? That's not -- I'm sure that's not the objective. So how we can get that perspective. And the blended mix, we are not too sure about the blended mix, am I right? So yes, you've given presentation on how do you see the TAM over next 5 years for each of the segment. But what is our current mix, I mean, mix also keep changing depending upon, of course, the industry. How should we look at it, Bosch, say 2029? I'm not asking quarterly because I know you don't talk about quarters, correct? Let's focus 5 years. In 5 years, the content per vehicle blended or maybe you can give the blended index for you right now, wherever it is compared to the last 5 years? And how do you see that over the next 5 years? Some trends, Some trends. I'm sure future is unpredictable, very difficult to answer the question, but some trends.

So we'll share it a little bit amongst us. I'll give the overall and maybe, Guru, you can specifically talk about electrification, nitrogen. Look, what happened in the last 4, 5 years was there's been a huge reduction on diesel for pass car and utility vehicles, which I talked about the 48% to 20%, which has happened also in Europe. So naturally, that would have an impact on a company which was heavily dependent and focused on diesel. So you saw that impact from that angle. And while we continue to retain our strength on diesel, we increase our strengths on other areas, keeping this in mind that this is a irreversible trend and one has to face it. And the settling down of 18% to 20% is something which is likely to stay also, number one. Second, what was very important was, were we prepared for the acquisition and the legislation change, the map that he showed and to enter the market through acquisitions, and I give you 2 data points. One data point was February 2020. We shared INR 23,000 crores for the next 5 years on BS-IV to BS-VI. And I shared one more data point today saying that this year, we've had the all-time highest acquisition for Bosch Mobility business. That should give you already an indication because it's acquisition. And my slide on content per vehicle is linked to legislation change. So that also gives you an indication on where we are. Now these -- you can't directly now link to margins because that's not legal. Margins are dependent on the whole market. What happens, including the thing that happened in the world today, including logistics [went heywire], RMI, et cetera. So you can't link it to [indiscernible] So do we have a game plan? Answer is yes. Do we plan that out well before example, what he mentioned, and there, I'll give it to him on what we are planning, where India will be behind others, but electrification, hydrogen will come and what we are planning. But over to you. So core, which is ICE. We are very much there, very clear game plan, including rewired core and very clearly for the emission road map given and the emission road map, I think, you shared is still '27 or '29 till '29.

'29.

So a very clear game plan. Beyond core and rewired core on hydrogen, I give you a generic cancer, but Guru, if you want to say something specifically on trends. And there, let me tell you, hydrogen, electrification don't expect one player to go to 80% and 90%. That's not the world that is going to be limited, yes. There will be several players, including OEMs and new age players.

And you didn't answer the content per vehicle, some index, something. I actually didn't get the answer, to be very frankly, because that's what my question is, how should we look at it over 5 years?

Look, we look at numbers inside the company in a very different way compared to what we talk in public because we will not do it in public. We look inside a company with rupees per vehicle or euro per vehicle.

That's what you...

We clearly see what our content on x going up to 1.2 or 3 or 5 or in case of tractors, even higher, and we very closely look at that because it's a worldwide system, including in India, but we don't share it.

And what is the reason for that -- sorry for that. What's the reason for that? Because many global companies do share with their global shareholders...

All things you don't share with everyone.

I'm talking about the large companies, and we are a listed entity, am I right?

Company. but look...

I mean, globally, their share, I mean.

When I'm giving you a 1.5x, so I'll have to translate this for my colleague. [Foreign Language] So for those who understand glance is good. I have given you more than a glance. This is the first time we have shared with you, market, content per vehicle and target addressable market. And you just have to add up the 3 and get your maths right.

Perfect.

I think that should be a good enough answer.

Maybe just to elaborate a little bit. Soumitra showed the content per vehicle progression on our traditional technologies. So there, you've seen the sort of progression we have. But in case of electrification, for example, the order simply multiply several fold. So very easy to calculate its, $10, $12 per kilowatt of every e-axle that gets in. So the acquisition value for us is even orders bigger than what we would have had with the diesel acquisition with somebody. So there, it's very easy for you to calculate. But he also mentioned a very important fact at this point of time in the electric vehicle evolution is that it's pretty chaotic, chaotic or dynamic. The market shares and how things will play out are not steady state yet. We would be happy at this point of time, if we are as Tier 1s looking at a 20% market share, that would be great. It's probably going to change in 5 years from now where our positions change, and we want to be a leader there as well. We are very well prepared for that. But as we move further, we can talk more about it. But right now, it's very dynamic to link these 2 and say, because of this, the content per vehicle, and this is the kind of acquisition potential, it's very, very hard to quantify. Hydrogen, we showed the portfolio. I mean it's actually 100x of where we are with regard to diesel. Very, very huge.

So just on a lighter side, I deeply appreciate your persistence, but you'll get the same answer from me.

Don't worry, we'll keep persisting.

Sir, this is Prateek from Nippon India Mutual Fund. Just one question. So you talked about you have no legacy in the electric version side, right? But you do have a legacy when it comes to the traditional powertrains -- okay. You do have a legacy when it comes to the traditional powertrains business. In terms of market shares, when this transition is happening, will you be able to maintain that same market shares? Or in this new transition, there are new competition coming in, and hence, the domination which we have, if I may use that word in the ICE world might not be a correct picture in the EV world?

I really -- in McDonald's, they say I'm loving it. But I have to decode your question whether you are wanting to know how much is our market share and where are we?

No.

Then it's pretty good.

No numbers. I'm saying the transition, sir.

I won't use the word domination, yes. No market share is there for domination. We have used it like when we did for BS-IV to BS-VI. I was sharing with some of your colleagues, Bosch has very good cross domain knowledge. And because we have cross domain knowledge and because we look at customizing the solution for every OEM from the conception and that was a very good example of BS-IV to BS-VI to the SOP. So this, we will continue to use as a USP. Bosch India is able to do a lot and especially under Bosch Limited. A lot of cross domain, cross legal entity, yes. My colleague, Guru, was heading Automotive Electronics, and he was the MD of that company. But very close collaboration because automotive electronics is delivering into Bosch Limited. So -- and Bosch Limited is also the front face to the entire customer. So no other legal entities there, Bosch Limited does that. So we will continue to cross collaborate, we have the strong knowledge of what our parent does of cross domain knowledge, and we will continue to get in as we do for core, rewired core. In case of new businesses, we will again use our parents knowledge and we'll do again cross collaboration. But there, the playing field is different from which we have already indicated. So we will continue. What is an outcome of the percentage that we don't look at. We go for every acquisition actually. We have an acquisition calendar. We look at naturally projects won, projects, not won, et cetera. But if I give you an indication, we've had the all-time highest this year acquisition, again, that gives you [Foreign Language].

Maybe just to add to what he said on a global level, the Bosch acquisitions, as I said, crossed EUR 22 billion in electrification alone. So we are the #1 Tier 1 in terms of acquisition value today. And the situation in India may be very different, and we are aware of it. We're doing everything to make the best of the situation here because there are 2 Indian OEMs and the rest of them are global OEMs. A lot of them will bring global platforms. We are already designed into several global platforms, and they will come here as well. So -- the thing I would urge is don't look at it at this point of time when it's still in a huge amount of flux. This thing will come to light maybe in 3 years from now, 4 years from now when you start to see real volumes come into the market.