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Dell Computers looking at manufacturing unit in India — Scouting for location in South

Preeti Mehra

Davos , Jan. 28

GLOBAL IT major Dell Computers is looking to further its engagement with India and even thinking in terms of a manufacturing unit that would be based in a location that has both seaport and airport close by, sources in Davos told Business Line on Saturday.

According to the sources, the company was scouting for place around South India.

While the manufacturing facility is part of the future plans of the company, the Dell Computers Chairman, Mr Michael S. Dell, who was at the India breakfast meet organised by the CII in Davos on Saturday, said on the sidelines that the company would be making a major announcement in India on Monday.

Though he declined to divulge the details, he made it clear that it would not be pertaining to the company's manufacturing plans in India.

Earlier, the Commerce and Industry Minister, Mr Kamal Nath, had also stated during his press conference that Dell Computers was looking at creating a manufacturing base in India. Mr Dell, when asked about the investments he was planning in India, said that the announcement would be made soon. He added that the company's BPO business was on the growth path with the company having grown to three sites in Bangalore, Hyderabad and Chandigarh, and was moving from the temporary facility model to a campus model in the three cities.

Mr Dell had asked the three-leader panel, comprising the Finance Minister, Mr P. Chidambaram, the Commerce and Industry Minister, Mr Kamal Nath, and the Deputy Chairman of Planning Commission, Mr Montek Singh Ahluwalia, the specifics of Government policy to create an industrial energy in the country and set the stage for investments. In response, Mr Nath said that the country was in the process of evolving a specific policy and was targeting the manufacturing sector as one job in manufacturing leads to three jobs in the services sector.

He invited Mr Dell for a dialogue on the policy front and said, "We are looking forward to your project in India." Mr Chidambaram in his answer to Mr Dell informed him of India's plans to have `assemble, test and make' facilities, of which two would be ready this year. He said that is what companies had asked for as the entry step into India, but if Mr Dell wanted to go directly to manufacturing, India would welcome it. Mr Chidambaram also said that two other IT majors were also talking to the Government for setting up base in India and talks with one of them was at an advanced stage.

Related Stories:
Dell plans campus in Hyderabad
Dell opens global development centre in Hyderbad

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