Bosch shares fall 2% as supply chain disruptions may hit operations

Shares of Bosch Ltd. opened 2% lower on Wednesday, October 29, after the company informed the exchanges that potential supply chain disruptions may impact its operations.

The development stems from the ongoing situation surrounding Nexperia, one of Bosch's key suppliers of electronic components.

As a global company operating in India, Bosch said it is inherently dependent on a robust and interconnected global supply chain, particularly for electronic components.

"Changes in foreign trade policy and geopolitical developments, such as those affecting Nexperia, have a significant impact on our business," the company said in an exchange filing.

Bosch acknowledged that the current situation presents "significant challenges." It added, "We are currently working to serve our customers and to avoid or minimise production restrictions."

However, the company cautioned that if export control restrictions persist, temporary production adjustments at select manufacturing plants in India cannot be ruled out.

Bosch said the restoration of normalcy in the global supply situation and its related impacts are being "closely assessed and addressed on top priority."

Shares of Bosch settled 1.35% lower on Tuesday at ₹38,480. The stock has been largely flat over the past month.Read about our editorial guidelines and ethics policy