Bangalore, June 2 (IANS) Global supplier of technology and services Bosch group Thursday announced a planned investment of Rs.2,500 crore over the next two years to augment its production capacity, business portfolio diversification and research and development.

"Of the total investment planned by the group in India between 2011 and 2013, Rs.1,300 crore will be invested by our flagship company (Bosch Ltd) to set up a greenfield facility in Chennai to manufacture electrical drives for the domestic market by 2012," Bernd Bohr, chairman of the Bosch Automotive Group, told reporters here.

The euro 47 billion group will also invest an unspecified amount in software engineering and developing power train electronics for gasoline and diesel engines along with hybrid and electric vehicles.

"We will employ about 800 engineers in our Bangalore and Coimbatore facilities to develop power train electronics for reducing carbon dioxide (CO2) emission.

The group plans to make substantial investment in developing new products for the Indian market, including an upgraded version of Inline pump for higher injection pressure to meet the forthcoming emission norms under Bharat Stage 3.

"For the low-priced vehicle segment, common rail for enhanced fuel efficiency is also being worked upon. Innovative solutions for tractors is another area of work we will be pursuing," Bohr said.