According to Robert Bosch India Ltd (RBIL) chairman, Hannes Bertling, Bosch will set up a manufacturing base in India to source automotive components for exports to US and the Western European countries.

RBIL was set up by Bosch in January 1998 to explore new businesses and other areas not pertaining to Motor Industries Companies Ltd (Mico), the existing joint venture of Bosch in India. Mico logged in a turnover of Rs 1,372 crore for the calendar year ending December 1997 with a net profit of Rs 95 crore.

``Over the next three years, we will invest in fuel injection equipment, automobile lighting and auto electronics, along with other areas like wiper systems,'' Bertling said. To begin with, Bosch is setting up a Rs 200 crore factory at Jaipur for making fuel injection equipment and automotive equipments. The factory is likely to be commissioned next year.It will also pledge an annual investment between 10-15 per cent of its total turnover in India, he added.

``Low labour cost, relatively cheaper investment, particularly local funds, provides us good opportunities for operations in India. The country offers an attractive opportunity. If the volumes improve, we will be keen to invest further,'' said Bertling, who is also managing director of Mico.