MTQ has been a stable, conservative business with a good niche and it is about to sizzle because of the Bosch distribution business it has clinched in Australia. My question is - what is the size of the Bosch business in the auto after market? No one seems to recognise that this is a critical factor in estimating how much difference in revenue and profit it will make to MTQ. I can\'t find any figure on the Internet. Potentially, the boost from Bosch should be significant.
Hi Harlequin, I suspect the boost to sales may be significant, as Bosch is a world-renowned brand name and their partnership with them will benefit MTQ not just in terms of sales but also reputation and brand visibility (referring to their \"one-stop shop\" Bosch Superstores). I also suspect the reason you cannot find any numbers from the Net is because these sales figures in Australia cannot be readily quantified; and so based on what the CEO KKK said, we have to take it at face value that the boost will be \"significant\". The issue now is how much of those additional sales can translate into actual bottom line numbers! Engine Systems division has never been known for registering good margins, and so it remains to be seen if this boost to revenues will also translate to a boost in gross and net margins for the division. The deal should let them build their network and I will expect the positive flowthrough effects to last at least 12-18 months before any really tangible effects can be noticed. That\'s part and parcel of building a good business - time is needed. Note: I am vested
