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read moreDell sets up first manufacturing facility in India
Sufia Tippu
Thursday, 14 September 2006 19:05
Dell is setting up its first India manufacturing facility in the southern port city of Tamil Nadu. This would be the third manufacturing unit in the Asia-Pacific and Japan region, after Penang, Malaysia, and Xiamen, China.After announcing its manufacturing plans in India earlier this year, the company has finally zeroed in on Tamil Nadu.
The new facility will be located in a 50-acre hi-tech park in Sriperumbudur in the outskirts of Chennai which is rapidly becoming a hi-tech manufacturing hub with Nokia, Flextronics, Motorola among others setting up huge manufacturing facilities.
Dell intends to invest $30 million over five years for the manufacturing unit.
In its most recent operating quarter, Dell shipments to India increased 82 per cent while revenue grew 63 per cent. The company gained two points of market share in the period, to more than 7 percent, and ranks number four in the country.
Dell expects to begin manufacturing in the first half of 2007. It will initially focus on production of desktop computers, which make up about 70 per cent of Dell's current business in India.
“The company is achieving strong customer acceptance and demand in a strategically important market,” Paul-Henri Ferrand, vice-president of South Asia said during the inauguration of the unit in Chennai. “The state offers an exceptional work force and has become a unique strategic-investment zone, along with easy proximity to a large base of current and potential Dell customers” he added.
"This operation, in a region increasingly known for its advanced electronics hub, will give us far broader access to both India's dollar- and rupee-based IT markets, and we believe more and more customers will be drawn to the advantages of direct relationships with Dell," said Rajan Anandan vice-president of India sales.
Ferrand also added the company's strength and momentum with customers in India and APJ are impressive. In the second quarter of this year, Dell became the second-largest provider of computer systems in the region.
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