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Dell To Open Its First Manufacturing Plant In India

Buoyed by strong customer acceptance combined with increasing demand, Dell Inc. announced on Sept. 14 it will locate its first plant in India in the state of Tamil Nadu. "This MOU [memo of understanding] benefits both Tamil Nadu and Dell, and we're very appreciative of the cooperation and partnership between the government and our company," said Paul-Henri Ferrand, vice-president of South Asia Dell. "The state offers an exceptional work force and unique strategic-investment zone, along with easy proximity to a large base of current and potential Dell customers."

Dell's shipments in India increased 82% while revenue grew 63%, gaining two points in market share to reach more than 7% on the Indian market. Dell ranks No. 4 in the country according to a company statement. Production, beginning the first half of 2007, will initially focus on desktop computers, which make up about 70% of Dell's current business in India.

"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 information-technology 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.

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