The India unit of engineering and technology giant Bosch paid Rs 13.35 crore for a Hyderabad-based company that provides a B2B e-commerce marketplace for purchasing and selling auto parts.
In a stock-exchange filing on Tuesday, Bosch said, “This is part of our goal to develop a successful digital ecosystem around auto workshops.”
According to the business, “Bosch is actively driving India’s online markets to answer our clients’ requests for expanded online services in the B2B sector.” We anticipate steady growth in the future, particularly in this field. To achieve these goals, we’re partnering with the Indian B2B E-Marketplace Autozilla,” stated Soumitra Bhattacharya, President of Bosch India.
In India, independent garages buy spare parts primarily offline, placing orders or visiting dealers, in reality, to pick up the parts. The entire spares procurement process, from part identification to estimation, availability, and delivery, is highly error-prone, opaque, iterative, and wasteful, according to Bosch.
The Autozilla platform employs artificial intelligence (AI) and data analytics to facilitate spares discovery, establish availability and pricing, and match IGs with sellers to assure prompt procurement of the correct part at the right price.
According to the company, the platform also enables the digitization of the auto parts supply chain and quick eCommerce readiness by connecting parts manufacturers, distribution companies, and retailers, resulting in a common platform for procurement, supply, tracking, and promotion across all participants.
“This transaction will help Bosch’s automotive aftermarket segment boost market pull through its “Extra” Rewards Program for independent vehicle workshops and Bosch Car Service outlets,” Bosch noted in the exchange filing.
Over 250 Bosch Car Service shops exist in India. The acquisition of Autozilla Solutions, which is estimated to be valued Rs 51.4 crore, is expected to be completed by March 2022.
With the help of Autozilla’s e-commerce capabilities, consumers can easily locate and purchase automotive parts. Vijay Gummadi constructed it in April of 2015.
Autozilla wants to make it easier for purchasers to find spare parts as the nuts and bolts of vehicles and two-wheelers become more complex.
The startup’s revenue for the financial year 2021 was Rs 1.28 crore, up 191 percent from the previous year. The organization’s net value was Rs 1.52 crore as of March 31, 2021.
According to Autozilla’s LinkedIn profile, sellers may reach out to a nationwide network, while buyers can get the vehicle parts they require.
Automotive products account for 86 percent of Bosch’s total revenue of Rs 9,716.23 crore. In FY 2021, reduced vehicle mobility had a significant impact on the manufacturing aftermarket segment.
Bosch reported a combined pay of Rs 2,918 crore for the quarter ended September 30, 2021, up 17.7% from a low base in the previous quarter.
“Although automotive market manufacturing in India has decreased owing to the current semiconductor shortfall, there are early signs of recovery,” stated Soumitra Chatterjee, President, Bosch Group – India, in a news release.
His prediction was that “market vulnerability” will remain a major concern for the automotive sector in the future.
There are “enormous upheavals in terms of fundamental and recurrent developments, as well as expanding potential in the electric mobility and flexible categories” in the vehicle industry, Bosch says.
While maintaining commitment to its core of production and service excellence, Bosch said in a statement that it is already on its path to becoming a digital ecosystem.
It spent Rs 743 crore on reorganization and transformation expenditures in FY 2021.
Digitalization has been included in all of Bosch’s service offerings. In the e-commerce space, it has worked with Amazon and Flipkart, as well as the government’s e-Market platform, which is a dedicated online market for goods and services bought by government agencies and public sector enterprises.