Chennai: Global computer major Dell on Thursday signed an MoU with the Tamil Nadu government for a Rs 280 crore plant at Sriperumbudur near Chennai, which is expected to begin production by June 2007, a top Dell official said.
The facility, to come up in a 50-acre land in Sriperumbudur Hi-Tech park, would initially manufacture desktop computers that account for 70 per cent of the company's current business in India, Dell Vice President (South Asia) Paul- Henri Ferrand said.
The investment would be made in two phases, with about Rs 140 crore in the first five years and then scaled up in the second phase. The plant is expected to manufacture three to four lakh units in the first year, Simon Wong, Vice President, Asia operations said.
Kip Thompson, Vice President- Global Facilities said the facility would initially cater to the Indian market. The pricing of the computers would be "cost-effective compared to other branded computers in the Indian market." he said but refused to divulge further details.
Rajan Anandan, Vice President, Sales-India, said Dell would introduce a whole new range of products for the Indian consumer market, over the next six to nine months. He added that the company would target the Small and Medium Businesses in India, which is a huge market. "The sweet spot for us is the SMB's," he said.
Union IT and Communications Minister Dayanidhi Maran hoped that with the entry of Dell, "more such investments will follow".
Tamil Nadu Industries Secretary Shaktikanta Das said Dell's setting up of its unit in the state would make a significant impact on the overall investment scenario of the state.
"We are reasonably confident that it will boost other investments in the state," he said.
“Dell's suppliers and component manufacturers were also expected to set up units, bringing in investments almost seven times more,” he added.
The facility would employ 1,000 people directly and 4,000 people indirectly initially over a period of five years.
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