Wednesday, December 06, 2006

Dell to launch ‘Made in India’ PCs by August'07.

Dell Inc., on Tuesday announced the commencement of work on its India manufacturing facility at Sriperumbudur Hi-Tech park, near Chennai. Chief minister M. Karunanidhi launched the project with the ceremonial unveiling of an architectural model of the proposed plant. Dell Asia Pacific president Steve Felice told reporters the $30-million project would be completed by July 2007 and would start shipping desktop computers from Chennai from August 2007.

The new facility coming up in a 50-acre land in the special economic zone would be set up in three phases and would have an initial production capacity of 400,000 desktop computers. Desktop computers make up about 60 per cent of Dell’s current business in India.

The state government has also allotted 150 acres land adjacent to the plant where the company will house its suppliers. The suppliers are likely to invest $210 million in the setting up plants.

Dell has already commenced hiring for the new plant. The new facility will provide 1,000 direct jobs and another 4,000 jobs indirectly. Vice-president and GM, Dell India Rajan Anandan said that Dell is the largest player of desktop PC in the Indian corporate segment with a market share of 40 per cent and with the new facility the company would penetrate in the SME and mass segment. With the PCs shipping out from the local manufacturing facility, Dell expects to bring down the prices “significantly”, which it plans to pass on to the customers. The company would initially “focus on the domestic market” and later on it will start exporting from India. The company has also plans to manufacture laptops and servers later. Mr Karunanidhi said his government had signed six MoUs in the hardware manufacturing sector and attracted an investment of Rs 2,700 crores.

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