Bosch is not here anymore – Kommersant Newspaper No. 152 (7353) dated 08/22/2022

Kommersant learned that the German household appliance manufacturer Bosch is looking for a buyer for its Russian factories. Assets, according to unofficial information, were already interested in several Russian retailers, but they were not satisfied with the requested price. Market participants believe that the plants can cost up to 4.4 billion rubles. They consider Chinese or Turkish vendors to be the most likely buyers.

The Russian structure of the German Bosch (LLC BSH Household Appliances, produces refrigerators and washing machines in Russia) is looking for buyers for two factories located in the village of Strelna near St. Petersburg, a source in the Russian electronics market told Kommersant. Most of the components of the company received from the EU. In working condition, according to the interlocutor of Kommersant, they cost €65–75 million (3.8–4.4 billion rubles at the Central Bank exchange rate on August 19).

“Now, without producing products, factories cost many times less,” the source of Kommersant is sure, adding that enterprises “are specialized in Bosch technologies.”

“Bosch does not understand what to do with Russian capacities that do not make a profit, so other market participants are considering buying them,” another source confirmed to Kommersant, adding that a number of companies, including Russian retailers, were interested in enterprises, but “The price seemed too high.” Bosch “Kommersant” said they do not comment on the rumors.

After the start of the military operation in Ukraine, the US and the EU imposed sanctions against Russia, including on the supply of equipment and components, which is why Bosch suspended the work of factories near St. Petersburg (see “Kommersant” dated March 15). Later, on the official website of Bosch in Russia, a message appeared that due to the tightening of export controls, factories cannot fully function and supply products.

According to Holodilnik.ru, in the first half of 2021, the total sales of Bosch in the Russian Federation in the category of large household appliances amounted to 540 thousand devices, and in 2022 – only 412 thousand. In money in the first half of 2021, revenues amounted to 18.7 billion rubles, in 2022 -18.4 billion rubles. More than 27% of the company’s revenue came from dishwashers, more than 12% from hobs, and 17% from ovens, Holodilnik.ru says.

According to Citilink, among the brands of large household appliances in this network in the first half of 2022, Bosch ranked fourth, behind Gefest, Beko and Electrolux.

In the first half of 2021, the top three in unit sales were LG, Bosch and Indesit. In terms of money, like last year, Bosch became the leader in the first half of the year.

According to a representative of Marvel Distribution, the acquisition of the German vendor’s factories may be considered by Chinese or Turkish manufacturers of home appliances, as was the case with Whirlpool. The company’s plant in Russia was bought by the Turkish Arcelik (see “Kommersant” June 28). Another interlocutor of Kommersant adds that among the candidates may be the Chinese Midea, which, according to her, “has long wanted to be localized in Russia,” or another brand from China, Hisense.

Gleb Mishin, head of the representative office of the Candy-Hoover Group household appliances manufacturer in Russia (part of the Chinese Haier Group), suggested that if the plant is sold, technological processes and licenses could be transferred, so Russian manufacturers may be interested in buying. Mr. Mishin adds that potential buyers will have to build supply chains for the supply of original Bosch components or find analogues.

Timofey Kornev