Bosch Strengthens Presence in India with 74.2% Acquisition of Johnson Controls-Hitachi AC
Robert Bosch GmbH is expanding its footprint in India by acquiring a significant stake in Johnson Controls-Hitachi Air Conditioning India (JCHAI). The company has secured a 74.2% stake from JCHAI’s parent entities, Johnson Controls-Hitachi Air Conditioning Holding (UK) and JCHAC India HoldCo Ltd, effective July 31. Bosch plans to announce a mandatory open offer for the remaining shares held by minority shareholders, although the financial specifics of the deal have not been disclosed. This acquisition is part of a larger global transaction valued at $8 billion, marking Bosch’s largest acquisition to date.
Details of the Acquisition
Bosch’s acquisition of JCHAI is a strategic move to enhance its presence in the air conditioning market. The deal includes the complete takeover of the Johnson Controls-Hitachi joint venture in India, which encompasses Hitachi’s 40% stake. This acquisition aligns with Bosch’s earlier announcement to acquire the air conditioning solutions division for residential and light commercial buildings from Johnson Controls. The company is expected to provide further details regarding the mandatory open offer for the remaining 25.75% shares held by minority shareholders soon. The financial terms of the acquisition remain undisclosed, but the move is seen as a significant step in Bosch’s growth strategy in the Indian market.
Performance of JCHAI
JCHAI has shown promising financial performance, reporting sales of ₹2,756 crore and a net profit of ₹58 crore for FY25. This represents a remarkable 44% revenue growth and a return to profitability after a net loss of ₹75 crore in FY24. However, the company experienced a 14% decline in sales during the June quarter, totaling ₹852 crore. This decline, while concerning, is noteworthy as it outperformed the broader industry, which faced a 40% drop in the first quarter of FY26 due to adverse weather conditions. JCHAI’s resilience in the face of these challenges highlights its competitive position in the market.
Market Position and Future Prospects
JCHAI is well-positioned in the air conditioning sector, competing against major players such as Tata-owned Voltas, LG, Havells, Daikin, and Blue Star. The company manufactures a range of cooling solutions, including room, commercial, and ductable air conditioners under the Hitachi Cooling and Heating brand. The demand for light commercial air conditioners is on the rise, driven by increased government spending in healthcare, education, and infrastructure, as well as private sector investments. JCHAI is also expanding its international presence across South Asia, establishing operations in countries like Bangladesh, Maldives, Sri Lanka, Nepal, and Bhutan.
Implications for Bosch and the Industry
The acquisition of JCHAI is expected to facilitate Bosch’s global integration of air conditioning operations while allowing for tailored strategies in the Indian market. Industry experts suggest that Bosch’s decisions regarding JCHAI’s operations will be influenced by the completion of the open offer, given the company’s listed status. As Bosch integrates JCHAI into its portfolio, the move could reshape the competitive landscape of the air conditioning market in India, potentially enhancing Bosch’s offerings in the premium segment, where it already competes with brands like LG and Samsung.
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