Dell chooses Tamil Nadu to manufacture PCs

After setting up customer-care centers in India, Global computer major, Dell Inc is now planning to establish a manufacturing plant in the sub-continent. Following a memorandum of understanding (Mou) signed between the leading firm and Tamil Nadu state government, Dell has announced that it would locate its first desktop PC factory in the South-Indian state.

Dell had evaluated various states in the country for setting up its manufacturing base and it chose Tamil Nadu due to the proactive approach of the state government, quality of manpower, good connectivity and logistics and excellent infrastructure.

Paul Henri Ferrand, Dell's vice-president for South Asia, said, “Tamil Nadu 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 will initially focus on the manufacturing of Desktop computers which contribute to about 70 percent of the company’s current business in India. Dell expects to start manufacturing in the new plant in the first half of 2007.

The manufacturing unit would come up at a 50-acre area in Sriperumbudur Hi-Tech Park, outside of Madras (Chennai), in the Special Economic Zone (SEZ) and Dell will make an investment of Rs 280 crore (Rs 2.80 billion) in it.

This project will provide direct employment to 1,100 people and indirect employment to over 4,000 people in India.

Rajan Anandan, Dell's vice-president of India sales, said, “The operation 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.”

Dell said that in its most recent operating quarter, its shipments in India increased 82 percent, while revenue grew 63 percent.