 $ 30 m Dell plant in TN
 Tamil Nadu Chief Minister M Karunanidhi launched on December 5, 2006, the commencement of work on Dell's India manufacturing plant being set up on a 50-acre site at
the Sriperumbudur Hi-Tech Park.
The project was launched with the ceremonial unveiling of an architectural model of the proposed plant by Karunanidhi in the presence of Union Minister for Communications
and IT, Dayanidhi Maran, Steve Felice, president - Dell, Asia Pacific and Japan, Kip Thompson, vice-president - Worldwide Facilities, Dell, Simon Wong, vice-president - Dell
Asia Operations, and Rajan Anandan, vice-president & GM - Dell India.
The Chief Minister welcomed Dell's initiative in setting up a manufacturing facility in Tamil Nadu, and said this showed that the state was an attractive destination for foreign investment, ncluding in the manufacturing sector. The state government's pro-active approach had won the confidence of major investors, boosting employment potential and generating economic growth in the country.
Within six months of the formation of the DMK government in Tamil Nadu, at least six major foreign companies had decided to set up manufacturing or R and D units in the state with a total investment of Rs 2,700 crore, Karunanidhi said, adding that the single-window clearance scheme had proved effective. These units would generate both direct and indirect employment, he pointed out.
Steve Fellice said with an initial investment of $ 30 million spread over five years, setting up of Dell's plant in India marks a new beginning, not just in computers manufacture, but in manufacturing as it will bring in the globally renowned manufacturing and supply chain capabilities of Dell, Steve Fellice said.
The India plant will be part of Dell's global network of eight manufacturing facilities. It wil1 be the company's third facility in Asia-Pacific after Penang, Malaysia, and Xiamen, China.
Felice said, "In our most recent fiscal quarter, India has emerged as the fastest growing market for Dell, not just in Asia-Pacific, but around the globe. Setting up the factory will further support our already great growth trajectory as it would enable Dell to better address India's rupee-based market. This is the second new Dell operation in India to be announced this year, after our new Customer Contact Centre at
Gurgaon."
The plant's initial capacity is planned at 400,000 units per annum and will focus on desktop computers to begin with. Desktop computers make up about 60 per cent of Dell's
current business in India. Commercial production is expected to commence during the first half of 2007, when the first 'Made in India' Dell products will roll out. With this, delivery time to customers in India would come down significantly.
Dell helps build a complete eco-system wherever the company's manufacturing facilities are set up, and the start of a Dell plant in Tamil Nadu implies the arrival of additional IT suppliers in the state to deliver the key advantages of the Dell direct model. In fact, in addition to Dell's 50-acre site, another 100 acres have been set aside in the Sriperumbudur Hi-Tech Park for this purpose, said Rajan
Anandan.
Kip Thompson said, "Sriperumbudur is ideally located and has an exceptional work force. We are very appreciative of the forward-looking and pro-business approach of both the state administration and the Union IT ministry that make it simple for industry to set up a new venture here. We trust that India's fiscal policies will continue to evolve further and support greater IT penetration in the country. This plant adds to Dell's considerable manufacturing presence around the world and will help support the company's India growth."
"The opportunity for Dell in India is very exciting and we continue to grow from strength to strength. We are already a Rs 1,800 crore (approximately $ 400 million) business and the No 1 systems provider to the large corporate customers, and we will address the entire market more effectively with this new plant. We believe Dell's manufacturing team is the best in the world and we are confident this will open huge opportunities in India's rupee-based market to us," said Dell's
Anandan.
Dell has already commenced hiring for the new plant. Globally, the company manufactures its computer systems in seven locations: Austin, Texas; Nashville, Tenn.; Winston-Salem, N.C. and Eldorado do Sui, Brazil (Americas); Limerick, Ireland (Europe, Middle East and Africa); and Penang, Malaysia, and Xiamel, (China - Asia-Pacific and Japan).
A second South American production site is currently under construction in Sao Paulo, Brazil. The company has also recently announced its plan to set up manufacturing in
Lodz, Poland.
R Rangaraj
|
