Dell's Chennai unit to kick start in July, calls for tariff cuts

New Delhi, Mar 20 (UNI) Moving towards the one billion dollar mark, desktop and notebook computer maker Dell Inc today said it will set up its first manufacturing unit in India at Chennai with an initial capacity of four lakh units, which will start its commercial production in July.

The new plant would initially cater to the domestic market only, but depending on the future growth the company may use it for outsourcing the products.

Saying that the cause of concern today is the ''high taxes and tariffs'', which are bigger than China and the US, Mr Dell demanded a zero per cent tariff across the value chain in India.

''India needs to reduce tariffs on personal computers in order to attract more investment from Dell and its suppliers,'' Mr Dell told reporters here.

The company last year said it would invest 30 million dollars over five years in the Chennai plant, which is the also the first unit by the world's second largest PC maker.

''The 0.5 billion-dollar-company is looking at a 70 per cent growth in the current year with its revenues in the fast-growing Indian market heading towards one billion dollars,'' Dell Chief Executive Officer (CEO) Michael Dell said.

Starting with a four lakh capacity, the firm expects to ramp up output rapidly and is looking to employ over 1,000 people.

Dell has manufacturing sites in China and Malaysia in the region, where demand for computer hardware is soaring due to relatively lower penetration rates compared with western markets.

Dell, which competes with IBM and Hewlett-Packard Co and local firms HCL Infosystems Ltd and Wipro Ltd in India, had last year said the new facility would help it raise its share in the Indian market from seven per cent.

Dell already employs 12,000 people in India across its three business segments -- call centre operations, research and development activities, and computer and server sales business.

The company said in March last year it planned to increase its headcount in the country to 20,000 over the next three years to tap opportunities in India, which is a growing market for desktops and laptops.

UNI