Dell to set up computer plant in India
Pallab Bhattacharya, New Delhi
US computer giant Dell has announced its plans to set up its first production unit in India for making desktop computers as it seeks to push up sales in the fast-growing market. Dell has committed to invest 60 million dollars over a ten-year period and the production at the new unit, to be located in a special economic zone in the southern state of Tamil Nadu, is expected to commence in 2007, the American company said in a statement on Thursday. Desktop computers account for nearly 70 per cent of Dell's current business in India, the company's vice president for South Asia Paul-Henri Ferrand said. "This operation in a region increasingly known for its advanced electronics hub will give us broader access to India's dollar and rupee-based information technology markets," said Dell India's vice president Rajan Anandan. The company signed an agreement with Tamil Nadu government on Thursday to set up the plant, which will employ 1000 people to begin with, and this will be Dell's third manufacturing facility in Asia after China and Malaysia. Kip Thompson, vice president of Dell's global facilities, said the Indian plant would initially cater to domestic market and prices would be cost effective compared to other branded computers in Indian market.
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