Bosch Limited ($500530)

Ladies and gentlemen, good day, and welcome to the Bosch Limited conference call hosted by Batlivala & Karani Securities India Pvt Ltd. [Operator Instructions] Please note that this conference is being recorded. I would now like to hand the conference over to Mr. Annamalai Jayaraj from B&K Securities. Thank you, and over to you, sir.

Thanks. Welcome, all the participants, for Bosch Limited business update. From the management team we have with us today, Mr. Guruprasad Mudlapur, Managing Director and Chief Technology Officer; and Mrs. Karin Gilges, Chief Financial Officer. Bosch management will make a brief presentation, followed by a question-and-answer session. Over to you, sir.

Yes. Thank you, Jayaraj. Good morning, everyone, and thank you for joining the call today. By now, you all have seen the press release and the accompanying investor presentation filed with the exchanges regarding Bosch Limited's acquisition of Bosch Chassis Systems India Private Limited or RBIC. The core rationale is to consolidate mobility solutions, strengthen our portfolio and the market position. We'll now walk you through a brief presentation on the transaction, followed by a Q&A. Let me start with an overview of the Bosch Group. Founded in 1886, the Bosch Group is a leading global supplier of technologies and services with key business sectors in mobility, industrial technology, goods and energy and building technology. Bosch Group comprises of Bosch GmbH and approximately 490 subsidiaries and regional companies in more than 60 countries. According to preliminary figures, Bosch Group generated sales of EUR 91 billion as of December 2025. With roughly 4,12,000 associates worldwide, of which nearly 87,000 associates are dedicated to research and development, we are actively shaping future solutions across our diverse portfolio. Next slide, please. Now turning to the Bosch Group in India. Since beginning manufacturing in 1953, our footprint has grown to 17 manufacturing sites and 7 development and application centers. Critically, India is home to the group's largest R&D center outside of Germany, providing end-to-end capabilities that are vital to Bosch's global technology leadership. This allows us to localize solutions and respond with agility to market demand. In FY 2024-'25. Bosch India generated a net revenue of INR 373 billion and employed more than 38,000 associates as of March 31, 2025. Bosch Limited continues to anchor the group's India presence with a strong sharp focus on next-generation mobility, smart manufacturing and digital transformation. Next slide, please. Now let's turn our attention to RBIC. RBIC is a Tier 1 supplier of auto components, specializing in safety and braking systems for both four-wheeler and two-wheeler OEMs. RBIC has held a dominant market presence in India for these products, leadership built on sustained technology-led differentiation. This includes pioneering the introduction of breakthrough technologies, such as electronic stability programs, or ESP, and anti-lock braking, or ABS in India during the early 2000s. RBIC product portfolio is largely powertrain-agnostic, providing flexibility as OEMs transition platforms and diversify their model lineups. With increasing EV penetration, RBIC is well positioned as it drives significant demand for next-generation braking solutions such as iBooster and integrated power brake, essential for regenerative braking integration, improved efficiency and enhance their performance. It operates 3 state-of-the-art manufacturing facilities in the major automotive hubs of India. In FY '25, it recorded a revenue of INR 4,000 crores and a strong EBITDA margin of 19.3%. In the 9 months in FY '26, RBIC earned a revenue of INR 3,500 crores. Over the period FY '23 to '25, RBIC has achieved a revenue CAGR of 17% with its EBITDA margin expanding significantly from 12.8% to 19.3%. Next slide, please. Regarding the product portfolio, RBIC supplies a comprehensive suite of safety solutions from active systems like ABS and ESP to passive safety and actuation braking systems across passenger cars, utility vehicles, two-wheelers and other vehicle segments. The growth for this portfolio is driven by structural tailwinds. First, a strong regulatory push. We are seeing a clear road plan for enhanced safety vehicle safety in India with mandates for airbag, ABS, ESP and adoption of Bharat's new car assessment program. This continued tightening of safety norms provides a sustainable and predictable demand catalyst for RBIC's core products. Secondly, shifting consumer preferences. As the market shifts towards premium cars, consumers are increasingly demanding higher safety standards. This translates directly to greater penetration of advanced safety systems and a higher value of content per vehicle for RBIC. And third is the OEM strategy. OEMs are increasingly using safety as a core brand differentiator to build consumer and customer trust. This is driving the standardization of advanced safety tech across our platform. Next slide, please. Over the last 33 years, RBIC has built a strong domestic manufacturing footprint with 3 state-of-the-art facilities in key automotive hubs of Chakan, Manesar and Sanand. Crucially, in in-house manufacturing for majority of its portfolio gives RBIC tight control over quality, lead times and costs. The operational excellence is consistently validated by leading OEMs like Tata Motors, Maruti Suzuki, Toyota and Bajaj Auto, cementing RBIC's reputation as a trusted partner in the automotive industry. Next slide. Coming to the financial performance, RBIC has demonstrated steady profitable growth over the years. Revenue grew at a 17% CAGR from INR 2,900 crores in FY '23 to INR 4,000 crores in FY '25. This was fueled by strong market demand for safety products and increasing mix of higher-value solutions and an established first-mover advantage in key technologies. By strategically localizing production to enhance cost efficiency, its EBITDA margin increased from 12.8% to 19.3% and net profit margin from 8.1% to 13.9% during the same period. . Next slide, please. This brings us to the core rationale for the acquisition. RBIC presents a compelling acquisition opportunity for Bosch Limited. This is a strategic move to create a more powerful and enhanced mobility solutions provider. We see a strong intersection of capabilities between Bosch Limited's mechanical engineering excellence and RBIC's market-leading safety systems. Our decision is based on key benefits, firstly, an enhanced portfolio by integrating RBIC's industry-leading portfolio of active safety, passive safety and actuation systems, we will decisively strengthen our leadership position in the mobility sector. Second is the financial accretion. RBIC brings a highly profitable business with strong sustained demand. This transaction will immediately be accretive to our margins and accelerate our growth trajectory. And third, stronger operations. We are combining manufacturing excellence, which will fortify our operational competencies and supply chain resilience. In summary, this acquisition empowers Bosch Limited to lead the future of mobility, delivering superior growth and creating significant long-term value for our shareholders. Next slide, please. Right now, the mobility businesses at Bosch Limited are housed in separate entities. While Power Solutions and mobility aftermarket business is under Bosch Limited, the active/passive safety and actuation businesses are housed at RBIC. Hence, the portfolios are complementary without any overlap, thus, enabling Bosch Limited to combine these 2 offerings. By bringing RBIC into Bosch Limited, we are not just aspiring a business. We are expecting a single unified powerhouse. We'll be able to offer our customers enhanced scalable solutions for every vehicle segment and platform in the market. As discussed earlier, RBIC continues to witness strong demand from structural tailwinds, including regulatory push, evolving consumer preferences for premium and safer cars, OEM's focus on vehicle safety and India emerging as an export hub for automotives. By acquiring RBIC, we are positioning Bosch Limited to perfectly capture this growing demand and lead the future of mobility safely. Next slide, please. The proposed transaction is intended to enhance our mobility portfolio by adding the Vehicle Motion business under Bosch Limited. In India, we expect the mobility landscape to evolve radically by 2030 and beyond with sustainable, safe and exciting technologies. To enable a customer-first mindset and supplying components to delivering future-ready platform solutions, it becomes imperative to unite our forces and adopt an integrated approach. This transaction empowers Bosch Limited to steer growth with a wider portfolio offering in the complete mobility tech stack. Next slide, please. Bosch Limited continues to remain committed to create value for our shareholders in the future. In the recent times, Bosch Limited has taken deliberate steps at enhancing shareholder returns such as establishing a 50-50 joint venture to provide the axles and electric motors for electric vehicles, committing to dividend distribution of 55% to 85% of PAT. RBIC acquisition immediately strengthens our financial profile with an expected pro forma EPS accretion of approximately 5% based on FY '25 numbers. By uniting two strong cash-generative businesses, we are not only enhancing our current portfolio, but also building the financial capability to seize new growth opportunities in the future. Next slide, please. Bosch Limited's consolidated revenue from operations will increase by 22% from INR 18,000 crores to INR 22,000 crores on a pro forma basis for FY '25. Looking at the historical trend on a comparable pro forma basis, the revenue from operations CAGR would have been 11.2% compared with 10.1% over FY '23-'25. The FY '25 EBITDA margins will improve from 12.8% to 13.9% on a pro forma basis, led by higher margins of RBIC. Next slide, please. The purchase consideration for the transaction is INR 9,068.70 crores. RBIC's valuation is at an implied 10.6x our FY '25 EBITDA. We intend to fund the transaction through existing funds and internal accruals. The boards of Bosch Limited, our Boards of Bosch Group, Bosch Limited and RBIC have approved the transaction, and we target to complete the acquisition by the end of first quarter of FY '27 subject to shareholders' approval. The voting for the transaction and the issue of equity shares on a preferential basis has commenced on 9th of April and will continue up to 8th of May 2026. Next slide, please. Thank you all for your contribution and listening patiently through the call. . We will now address your queries. Thank you, and I'll open for questions.

[Operator Instructions] We have the first question from the line of Pramod Amthe from InCred.

Congrats to management for taking this bold step of acquiring the interesting business in the portfolio. I wanted to get your top-down thought process in terms of why the business was chosen when you also have Bosch Automotive Electronics, which is also related. And with this acquisition of chassis, the related party transactions will further go up with the Bosch Automotive Electronics. So how are you looking at the restructuring exercise? Will it be a step by step? Or the best is behind? If you can explain your top-down thought process.

Yes. Thank you, Pramod, for the question. I think the answer is as follows. Over the years, we've been carefully looking at the product portfolio, what makes sense and how should we integrate it best, in line with building a great mobility company as Bosch Limited. So that's been the focus and that's how we have looked. And RBIC portfolio perfectly suits that. And as you've seen through the slides and the presentation earlier, it's powertrain agnostic. It adds a lot of complementarity to the business and is margin accretive from day 1. So everything ticks off and it's a good business case for us. The specific question on RBAI or the automotive electronics business that you brought up. Look, we have always looked at what value can we create for our shareholders. And at the RBAI, as you also just said, is a completely captive internal contract manufacturer for Bosch Limited and the target company. So all their supplies come to these companies at very low margin at the RBAI operates. But at the same time, RBAI has quite some requirements on increased CapEx and high investments over the next year. So at this point of time, we did not find a good commercial logic to bring this business in when it does not add turnover, it doesn't contribute much to the margins and there is very heavy intensity on investments. So we thought it's good to leave it out for now. Do you want to add something, Karin?

Yes. And of course, going forward, we all the time look at all opportunities and what makes sense from Bosch Limited point of view. But also, of course, the Bosch Group is looking at the overall India, too. and therefore, this is an ongoing process and review in the upcoming time and years.

Sure. Interesting. And going forward for chassis business, because it's going to be a new learning for all the shareholders, and even though you have made a detailed presentation, if you could disclose revenue mix or in terms of two-wheeler cars,at any time, either now or later, will be helpful first. Second, with regards to outlook, can you talk about what are the synergy benefits we can expect from both these businesses coming through, one, either in terms of cost or sales team rationalization and how to build that into the model and also in terms of what is this entity's chassis localization and what's the CapEx requirement and intensity?

Yes. So we generally do not disclose product segment-wise details. That's one. And everything we can disclose preapproval of a transaction, we have disclosed and we have also uploaded in the portal. So you have full access. But I'm quite sure once the transaction is complete, we can invite you over to RBIC and show you a lot more about this and discuss this much more in detail. And your second part of the question was synergies. You want to talk?

Yes. So synergies, you have to see that Bosch Limited and also the Chassis Systems are all part of the Bosch Group. That means our processes, our framework, et cetera, are very much harmonized already. We have sales customer teams, which we have intensive exchange, same on the vendor side. So therefore, for the time being and also for the business case, it's not count any synergies. Nevertheless, after the approval of the transaction in the post-merger integration period, we will have a look if we bring these 2 companies as a mother company, Bosch Limited, and a subsidiary for the Chassis Systems under one roof. Let's say, are there further synergies if we dig deeper into the process, landscape, et cetera. But for the time being and for the business case, we were very conservative and did not count synergy.

We'll take the next question from the line of Mumuksh Mandlesha from Anand Rathi Equities.

Just want to understand, see, the number which you said in the PPT, seeing more than 25% growth. I just want to understand what are factors driving the growth for this entity in near term, sir?

Your question is why did we have such a growth and what are factors that are driving growth, right?

Yes. Right, sir.

Okay. Yes. So as briefly touched during one of the slides, the safety and braking business is quite closely coupled with legislation. And that's how things started. When the ABS mandate kicked in for passenger cars and two-wheelers, there were two step jumps. We had the ABS introduction in cars and then came ABS introduction in two-wheelers. And in the meanwhile, thanks to the safety norms getting tightened or appreciated by our customers, we also start to see bigger introduction or a heavy shift towards the ESP system. So now the largest part of our activity here is ESP systems. Of course, all this always couples with a lot of sensors. So there is an amount of sensors getting introduced whenever there is a system upgrade, and so more sensors brought in additional revenue. Then we have the new braking systems because EVs started to come in. Our new braking systems are a whole different generation of products, and they have also added additional step jump on the turnover. What continues steady is the conventional actuation systems, which have always been there and for products which do not fall under the general categories which are covered by legislation, ABS, ESP or other norms, conventional actuation systems still are there and, of course, also for the aftermarket. So this is the broad base on which multiple step jumps have happened. Of course, there are potential growth opportunities with regard to higher penetration of these systems in vehicles as we go by. Volume increase of every category will yield more business opportunity. We will also potentially see some huge growth opportunities when the two-wheeler ABS mandates come in additional categories, so that could be another growth opportunity. We also see some new technologies getting introduced on safety, and that could be another opportunity. So overall, we are very positive that multiple new revenue growth opportunities exist as we move forward.

Just on this one, for CVs also, sir I just want to understand the upcoming regulation around the ADAS, where the ESP, ABS systems see conditions for modern trucks and buses. I just want to understand how we are pleased to take that opportunity and how do you see the ability to capture those market share for that product.

Yes. I just want to reassure that we are placed very well and we're working on this opportunity as well.

Got it, sir. Just on the margin side, we have seen a multiple jump over the last 2 years. I just want to understand, obviously, it will be driven by a strong growth in revenue. On a sustained basis, do you see the current kind of FY '25 kind of margin should be sustainable and maybe will further increase, sir?

Yes. So if you look over the last couple of years and, of course, the scaling, new legislation, new products, additional safety features supported not only the growth in the top line but also the growth in the bottom line. In addition, the management of the Chassis Systems are very [ developed ] in the CapEx part. That means we have carefully and cleverly put the CapEx and the lines in a modular way, used either lines from the international production network within the Bosch Group to set up the capacities here in India. And that means overall not only to a growth in the top line, but also to a growth and significant improvement in the bottom line. And the margins are stable.

Just on this RBIC, is it possible to share broadly how would be the revenue mix between the CD, PV, two-wheeler, if possible to share?

We can say roughly 1/3 is two-wheeler and the other one is four-wheeler. So this is more or less the share in the revenue.

We will take the next question from the line of Mayur Parkeria from Wealth Managers India Private Limited.

Am I audible?

Yes, you are.

Yes.

Sir, of course, actually, I had a slightly clarification question, and sorry if I got this wrong and if I missed this. The issue of shares, which we are doing is only 2,460 shares at a total dilution of sub-INR 9 crores. Is it right? Out of the INR 9,000 crores?

Yes. Out of the INR 9,000 crores, roughly INR 8 crores are in preferential allotment. I would like to give you the background. This is majorly a cash deal. Nevertheless, in the Bosch Group, we have a philosophy. The former shareholder of the company is Robert Bosch Netherlands and Robert Bosch U.S. should still have a little bit skin in the game. And therefore, because they were long-term shareholders of the company and supported them, of course, and therefore, to make sure that there is a skin in the game also within the Bosch Group, we went this way to have a very small preferential allotment for both of the companies in Bosch Limited. This is the background.

Right, right. So I just wanted to clarify because our issue of shares was only INR 8.8 crores, and I just wanted to clarify that. So it's majorly a cash deal. Secondly, so -- before, I actually wanted to comment congratulations on consummating this. We had some understanding. The management had mentioned that we were looking at other options for increasing value from the perspective of shareholders and how we can get more and more companies under the Indian entity. So congratulations after a long time and the valuation is also accretive. However, I have a slightly different question from -- I'm referring to the April 1, 2026 intimation to the stock exchanges, which is where we mentioned under the caption about the issuance of equity shares on a preferential basis. right? And the Board meeting on 8th of April, referring to the Board meeting held on April 8 to consider a couple of matters, one of which is a proposal for issuance equity shares by the company and by way of preferential issue. I'm referring to that information which was given to the stock exchanges. I'm sure I must have missed, if any, any other. There was no other information with respect to this transaction or organization which we had, right?

Yes. I'll let our company Secretary respond to this. It's a little bit of a technical question.

Yes. I'll tell you the reason before the Company Secretary answers this, I'll tell you the reason I'm coming from. Firstly, the equity share issuance is the nature of the reference given in the intimation. Out of INR 9,000 crores, we are issuing only INR 8.8 crores of equity shares by way of preferential issue, firstly. Secondly, there is no mention whatsoever of any indication about the large capital in terms of the acquisition proposal, which is there. I understand because of confidentiality. But to mention the intimation and issuance of equity shares at a proportion of sub INR 9 crores versus INR 9,000 crores firstly. Secondly, this was an issuance of equity shares to the promoter companies, and that is also other than by way of cash because it's against the exchange of their shareholding. There was no mention of any of these aspects into the information, which would have given us an understanding that there is something on the card. It was simply issuance of equity shares. I am sure there would be other explanations. And if I missed any, please clarify on that side because it is a 20% acquisition to the revenue models, and there is absolutely zero understanding of whatever came in, in such a manner and especially the intimation -- reading in the light of intimation which we have given. [Technical Difficulty]

Hello, Can you hear us? We had a technical issue. One moment. The Bosch Company Secretary will answer the question.

The announcement relates to -- we cannot give all the information before the Board meeting about the number of shares, all these things. It is a UPSI matter for us. So that is why a broader agenda item has been given. And relating to the other agenda item, it is a matter which is not mandatory to be [Technical Difficulty]

Sir, your voice is...

Sorry to interrupt, sir. Your voice is not audible. Sir, if you're speaking right, we are unable to hear you.

Hello. Sorry. We again got disconnected. We are back. Maybe Company Secretary will repeat the answer so that is clear to everybody. Go ahead.

You can able to hear us now?

Yes, you're audible sir.

See, as per the regulations, we had given a broader agenda item to the stock exchange because these are all subject to the Board approval. So that is why we have not mentioned all the details in our communication, especially relating to the first agenda item since it is a U.K. segment. It was not mandatory at all to be informed to the stock exchange.

But sir, sorry, just a clarification. Even issuance of equity shares, we could have at least given an understanding that it is other than the issue of cash and it is to the promoter. Even that would not have fallen under the disclosure requirements. This is a preferential issue to the promoters.

We have not mentioned it.

But I hope this falls under the right governance.

Yes. No, thanks for the info. We all the time try to improve our governance. Thanks for this, and we will pick it up. Thank you.

We will take the next question from the line of Aniket Mhatre from Motilal Oswal Securities. .

Few questions. One was you indicated to there were step jumps in terms of growth drivers for Bosch Chassis Systems entity. Could you help us to understand what are the kind of growth drivers that we envisage going forward from here in terms of regulatory changes that will come up? And if you could help us in this which are the upcoming regulation changes that this company will play a critical role in, in the next, say, 3 to 4 years, that will help us understand what kind of growth we can expect this are coming to deliver. That will be my first question.

Okay. So I would say that there were several jump, like I explained earlier, which has brought us to a very good level in terms of regulatory changes and legislation. Now what will further propel growth for this sector is increased volumes, increased demand for safety norms and safety systems in vehicles and, of course, potential opportunity with two-wheeler ABS expansion into new categories. Of course, CV is an area where we see some opportunities. So that's another area to form. So this would be the broad areas, in addition to continued growth in safety systems across all categories and, of course, volume increases. EV, as I said, is another opportunity where new braking systems get used, and that would also propel further growth.

Any update you would have on this ABS mandate on two-wheeler that were supposed to come for up 125cc two-wheelers?

No, I don't have any new update that I can share with you right now. I believe the matter is under consideration and discussion. So whenever there is an update, if we hear it, we'll certainly update.

Sure. Sir, the next question was on this JV with Tata AutoComp that you have tied up. Could you help us elaborate on the scope of this JV. And whatever you could share in terms of how the - is it beyond e-axle motors as well? Or -- and how it will shape up between the 2 partners? What will be details you can share with us?

Yes. We believe the JV is a very, very good step towards consolidation of volumes and, of course, also a lot of synergies between the 2 companies. Tata comes with a great track record in this area. They've already been producing e-axles and they've also developed a very good supply chain around it. We have a huge amount of technology on the axles. And we feel at this point of time in terms of where the market is, how it's evolving, the volumes in the market today. we feel a joint venture approach to build synergies, consolidate everything and take things forward would be the best way towards growth and creating customer value for this upcoming electrification. So that's how we look at it, and that's the reason for the JV. And we hope that as we go forward, we will build on this continuously and improve the whole situation.

Sure. Any sense of how would the revenue profitability will be shared between the partners?

It's a 50-50 joint venture. So we will share...

Okay. Sure. And coming back to the question on the RBIC, the margin that we have seen, right, over the last few years. I mean, I was just looking at the historic numbers, revenue for this company has almost tripled since FY '19. But if I look at the costs excluding raw material, which is employee costs and other expenses, that sort of doubled in the last sort of -- between FY '25. So just wanted to understand, is it just the operating leverage-led benefit that has flown through? Or are there any other benefits also that have accrued to the entity and, hence, we have seen a very sharp improvement in margins -- or not a commensurate increase in the other expense line items? Some sense around that will be helpful.

Sure.

So I suppose you are referring to the net profit margin and to the improvement in the last couple of years, right? .

Yes, ma'am. Last couple of years, FY '25. Yes.

Yes. Okay. So as mentioned before, this is multi-dimensional. Of course, growth has all the time. If you have profitable growth and new products, which also includes more safety features, then you have the effect out of this as well. The third part is, and you mentioned it already, is the localization. And this is not only the localization of the finished goods, which the management of this company is in a very good and CapEx friendly way, let's say. But it is also secondly on the part and on the raw material. So therefore, you have a multi-dimensional -- and not to forget. And if you look in the presentation of, for example, quality awards, and the awards which this company won in the last couple of years, then you see a very, very good overall efficiency in the production. You see a very good quality level, which, of course, helps you on the cost base as well, very lean structures. And this altogether helped them in the last couple of years to significantly improve not only the top but also the bottom line.

Sure. And final thing, could you help us understand any sense around the CapEx for RBIC, say, in the future? I mean, if you could give guidance on a percentage to revenue perspective, or what things you could share.

Yes. Okay. The CapEx, I mentioned it already. There are two aspects. First of all, that this company has the capability to make a module -- has a modular approach in their products. That means you have [indiscernible] used again for different generation. It's also to the fact that you agility in the production. [Technical Difficulty]

Ladies and gentlemen, the line for the management has been disconnected.

Hello? I just mentioned, you have a modular step-up of the products itself. And therefore, you could partially transfer this also in the modular setup of the CapEx. In addition, we have the advantage within the Bosch Group that we can look into our international production network [indiscernible], capable to relocate line... [Technical Difficulty]

Sorry to interrupt, ma'am, your voice is not audible.

Therefore, we have the advantage within the international production. [Technical Difficulty]

Sorry to interrupt in between. The line for the management has been disconnected. Please stay connected while join them back. Ladies and gentlemen, the line for the management has been connected. Over to you, ma'am.

Sorry about this. We stopped with the CapEx. And I said we have a modular product partially because we are coming from a platform, which means that we partially can transfer also into the production to have a modular setup also in the production. In addition, within Bosch Group, we have the possibilities. If there are idle lines under the international production network, we can also relocate them to India. It's just two advantages. One advantage is that, of course, it is the second-hand line and we have an effect in the -- or as a base effect in the CapEx. And the second advantage is these lines were run already and ramped up, and we have all the technical KPIs. We know the overall efficiency. We known the maintenance schedules. So we are very, very familiar with these lines, which gives us the chance, if we relocate them, to have a very, very fast ramp up. So if you look at the CapEx overall, and you can see it also in the report we have uploaded, then we are, for sure, at a reasonable percentage of TNS in the CapEx. And we see this going forward whenever we have and a change in the generation, for example, in ESP or the new braking systems, we are going ahead with the localization, then this is reflected, of course, in the CapEx of the upcoming year.

We will take the next question from the line of [ Chetan Salke ] from Titan Capital.

My question is for Ms. Karin. You just mentioned 1/3 of our revenue is from two-wheelers and rest is from passenger and four-wheelers. So can you just clarify, please, if that was for Bosch India or for Bosch Chassis?

This was for Bosch Chassis Systems. It's an estimation roughly, please.

Okay. Okay. Got it. And can you please talk about our market share in new braking systems, ABS, or other key products that we have?

Yes. Let's say, we have in the product, overall in this company, we have a very good market share. We are competitive. But please understand that we, in general, do not disclose KPIs on the segmental basis. But we are well prepared and well placed in the market.

Okay. Okay. And then we have a lot of other entities which are in automotive segment as well. Let's say, for example, we have Bosch Rexroth and other entities. So is there any possibility that these entities might be clubbed under the group structure eventually going forward? Or what's the probability that you see or any potential synergies that you see?

Bosch Rexroth is not an automotive company. It's more heavy hydraulics company. No, we do not see synergies of bringing Rexroth into the mobility right now. Even globally, they operate completely independent.

Okay. Okay. Any other entities that can, let's say, Automotive Steering Systems or any other things? .

Yes, I mean, at this point of time, see, the thing is -- this is a constant look into our portfolio on how we should rearrange and make the best for a very strong mobility company in India. That, we will continue, and we are not ruling out anything at this point in time. .

We will take the next question from the line of [ Devansh Gupta ] from [indiscernible].

I joined the call late. So a couple of questions. As per September balance sheet, we have about INR 10,000 crores of cash and investments. And INR 9,000 crores is being paid to complete this transaction, which leaves about INR 1,000 crores of cash balance. So the first question is, does the acquired entity bring any cash to be now a consolidated entity? And how should we think about funding of any CapEx going forward by the company?

Okay. So I would like to give you the following perspective. Out of the INR 9,000 crores, it's the equity value. That means we have the enterprise value plus certain cash consideration because we have, of course, a basis cash in the company left. So this is, first of all, and this is -- we check also the cash conversion cycle. This is sufficient for this company. The INR 10,000 crores you see our balance sheet is, of course, at cost. If I look at this, our funds at market value, it is much better. That is the second thing. And the third thing is we are, even after the deal, well-equipped with cash. And both companies, Bosch Limited, plus the new one, have a very positive cash flow, of course. So overall, we made sure that we have -- afterwards both company is debt free and sufficient funds going forward for CapEx and other activities.

Got it. And what would be the cash generated by the acquired entity in H1?

The cash, we would at this point of time not disclose. But at least have a look at the comprehensive PwC report for the valuation, which we have uploaded. I don't know whether you had a chance already to have a look. This is really comprehensive and very transparent.

We have the next question from the line of Ajit from [ Nirzar Securities. ]

What is the current order book in Bosch Chassis?

Yes. See, the current order book is very full. It's the market leader. Very good market share across all categories and very good project pipeline for the next 4 to 5 years. So we are very, very comfortable with the order book situation.

Thank you very much. Ladies and gentlemen, with the lack of time, we will take that as the last question for today. I now hand the conference back to the management for closing comments.

Okay. Thank you, everyone, for participating and sharing your perspectives. We believe, at Bosch Limited, this is a great synergy of integrating this company, adds a very good, future-proof portfolio to Bosch Limited, which is quite agnostic to the powertrain choices the industry will make moving forward. And safety and braking are very critical as we go forward. So this adds a lot of complementarity while bringing in significant cash and margin accretion effect right from day 1 of the transaction. So we are very positive that this will do well for Bosch Limited. And thank you for your interest and good questions for today.

Thank you.

Thank you, members of the management. On behalf of Bosch Limited, that concludes this conference. Thank you all for joining with us today, and you may now disconnect your lines. Thank you.