Expanding footprint in the Middle East Upswing in Pakistan: Bosch establishes operations First office opened in Lahore

  • Important step in Bosch’s growth strategy in the Middle East
  • Bosch sees great potential for growth in the Pakistani market
  • Milestone for bilateral business relationships
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  • February 10, 2016
  • Business/economy
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press release

Lahore, Pakistan – Bosch continues to expand its activities in the Middle East: by setting up an office in the country’s second-largest city, Lahore, the supplier of technology and services has opened its first location in Pakistan. The company will focus initially on the sale of power tools and security systems as well as products and solutions from the Automotive Aftermarket division. “Pakistan’s current government plans to strengthen infrastructure and the energy sector. This will have great appeal for foreign investors,” said Ina Lepel, the German ambassador to Pakistan, at the opening of the new Bosch branch. “Bosch’s activities are an important milestone on the path toward bilateral business relationships with Pakistan.” The country is now one of the region’s emerging nations.

With annual population growth of more than 2 percent, Pakistan has one of the highest growth rates in Asia. From 1950 to 2015, the population grew approximately fivefold, to 190 million inhabitants. In comparison, Germany has a population of around 82 million, while Japan has 127 million. Pakistan is the sixth most populous country in the world, making it a very attractive market indeed for the Bosch Group. “On account of the growing population and the low median age of 22, we see good business opportunities in Pakistan for Bosch in the long term,” said Steven Young, president of the Bosch Group in the Turkey and Middle East region. According to the International Monetary Fund, Pakistan’s economy is likely to post steady growth of around 5 percent per year up to 2020. The reasons for this include the low inflation rate and a steadily growing middle class, which is forecast to increase in size in the years ahead by around 6 percent annually. Both factors are having an overall positive effect on local purchasing power. For example, GDP per capita has doubled over the past ten years, and is now at more than 1,400 U.S. dollars (just under 1,300 euros). “Against this backdrop of expected growth, our first office in Pakistan is an important step toward our long-term success in the Middle East. Above all, the central location of the major city of Lahore offers the best possible conditions for our branch office.” Lahore is located in Punjab, the most populous province in Pakistan, with more than 100 million inhabitants.

Bosch’s long-term growth strategy in the Middle East
The opening of a branch office in Pakistan is part of Bosch’s consistent and long-term growth strategy in the Middle East. The company is looking to seize the region’s potential while supporting the local economy with expertise. Steven Young is happy that Bosch will be a part of Pakistan’s growth story: “Our Pakistani customers will definitely benefit from our company’s innovations. Ultimately, we also contribute to improving quality of life for local people with our products and services.” Here, the company benefits from its many years of experience in the region, he added. The Bosch Group has been active in the Middle East for over 90 years and is present in 16 countries in the region today. Business there developed positively in 2015. In 2014, Bosch generated sales of around 240 million euros in the Middle East.

Contact person for press inquiries:
Agnes Grill, phone: +49 711 811-38140
Trix Böhne, phone: +49 711 811-6831

The Bosch Group is a leading global supplier of technology and services. It employs roughly 375,000 associates worldwide (as of December 31, 2015). The company generated sales of 70.6 billion euros in 2015. Its operations are divided into four business sectors: Mobility Solutions, Industrial Technology, Consumer Goods, and Energy and Building Technology. The Bosch Group comprises Robert Bosch GmbH and its roughly 440 subsidiaries and regional companies in some 60 countries. Including sales and service partners, Bosch’s global manufacturing and sales network covers some 150 countries. The basis for the company’s future growth is its innovative strength. Bosch employs 55,800 associates in research and development at 118 locations across the globe. The Bosch Group’s strategic objective is to deliver innovations for a connected life. Bosch improves quality of life worldwide with products and services that are innovative and spark enthusiasm. In short, Bosch creates technology that is “Invented for life.”

The company was set up in Stuttgart in 1886 by Robert Bosch (1861-1942) as “Workshop for Precision Mechanics and Electrical Engineering.” The special ownership structure of Robert Bosch GmbH guarantees the entrepreneurial freedom of the Bosch Group, making it possible for the company to plan over the long term and to undertake significant up-front investments in the safeguarding of its future. Ninety-two percent of the share capital of Robert Bosch GmbH is held by Robert Bosch Stiftung GmbH, a charitable foundation. The majority of voting rights are held by Robert Bosch Industrietreuhand KG, an industrial trust. The entrepreneurial ownership functions are carried out by the trust. The remaining shares are held by the Bosch family and by Robert Bosch GmbH.

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PI9172 - February 10, 2016

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