Calcutta, April 22: German engineering and electrical equipment maker Bosch is targeting a market share of 40 per cent in power tools by 2020.

Besides using Internet-based sales channels, the company will shift its manufacturing facility for power tools this year to a bigger factory in Chennai from Bangalore to cater to the growing demand.

"The professional power tools industry is estimated at Rs 1,500 crore and is growing at 7-8 per cent. In that we command more than one-third market share. Over the last five years, our compounded annual growth rate is 20 per cent," Vijay Pandey, vice-president (power tools division) of Bosch, said.

"We want to occupy 40 per cent market share by 2020," he said, adding that the growth in infrastructure and real estate will push up demand for power tools.

Besides institutional buyers, the company is seeing rising demand from individual customers. "A lot of people are converting from hand tools to power tools."

Pandey said the division had entered the e-commerce channels two years back and was seeing growth in online marketplace. "e-commerce is pulling the business up. We are on Flipkart, Amazon and Snapdeal. Right now, we command more than 60 per cent market share online. Around 5 per cent of our sales come from e-commerce. We expect it to be anywhere between 7 per cent and 7.5 per cent of our sales this year," he said.

On shifting the manufacturing facility, Pandey said, "Because of capacity reason we are now shifting to Chennai." Bosch sold around 1 million power tools last year and the Chennai plant would have a capacity to produce three times more.