Dell to invest $30 million in India to boost domestic production
March 22nd, 2007 Leave a comment Visited 22 times, 3 so far today
Dell to invest $30 million in India to boost domestic production
World’s second largest personal computer maker Dell might be disappointed with the taxation structure in the Indian market but they cannot ignore the huge potential of it either.
The company has announced that they would be investing close to around USD 30 million in the next five years to expand production capabilities to meet the demand in the market.
Dell Chairman and CEO Michael Dell added in a statement that their upcoming manufacturing plant at Sriperumbudur near Chennai would start production in July with an initial annual capacity of four lakh personal computers.
He said: “We have already become the number-one player in the commercial market, while in the server and storage business; we have grown our market share to 19 per cent from nine per cent.”
Dell added: “India has now about 50 million people online, which is less than five per cent of the population. Internet use in the country has increased manifold since the year 2000. For companies like Dell, it is important to help the second billion people worldwide, many from India, to get online so that they can participate and compete in the economy today and tomorrow.”
|
TechWhack on Facebook
|
March 22nd, 2007 at 6:45 pm
Great news; Dell’s investment in India is boosting for computer hardware industry. This will add fuel to become a strategic player in computer hardware too.. as every one know India is a significant player in computer software. This investment will take care of Michael’s two concerns namely the high import tariff on computers. Second concern is high sales tax rate. Since Dell commencing their production in Sreeperubadhur, they can seek sales tax exemptions applicable for SEZs. It will also help to come up as an industry hub. Already all leading car manufactureres made Chennai suberbs as their production houses, Nokia has come up with significant investment, Saint Gobain has made more investments recently. Hope these investments will give more and more job opportunities to the people and tax revenues to the administration.