Thursday, September 14 2006 16:13 Hrs (IST) - World Time -

Chennai: Dell today (Sept 14, 2006) announced it will locate the company's first India manufacturing facility in the state of Tamil Nadu, following completion of a memorandum of understanding between Dell and state officials.

In the presence of Mr. K M Karunanidhi, Hon'ble Chief Minister of Tamil Nadu and Mr. Dayanidhi Maran, Hon'ble Union Minister for Communications & Information Technology, the MOU was signed by Mr. Shaktikanta Das, Industry Secretary on behalf of the Government of Tamil Nadu in Chennai today.

Mr. Rajan Anandan, vice-president of India sales, signed the MOU on behalf of the Indian subsidiary of Dell in the presence of Mr. Paul-Henri Ferrand, vice-president of South Asia, Mr Kip Thompson, vice-president, Global Facilities and Mr. Simon Wong, vice-president of Asia Pacific/Japan manufacturing operations for Dell.

The project follows Dell's disclosure earlier this year that it would establish a dedicated manufacturing operation in India, where the company is achieving strong customer acceptance and demand in a strategically important market.

In its most recent operating quarter, Dell shipments in India increased 82 percent while revenue grew 63 percent. The company gained two points of market share in the period, to more than 7 percent, and ranks No. 4 in the country.

Dell expects to begin India manufacturing in the first half of 2007 that will initially focus on production of desktop computers, which make up about 70 percent of Dell's current business in India. The new facility and related operations will be located in a 50-acre land area in Sriperumbudur, outside of Chennai.

"This MOU benefits both Chennai and Dell, and we're very appreciative of the cooperation and partnership between the government and our company," said Dell's Mr. Ferrand.

"The state offers an exceptional work force and unique strategic-investment zone, along with easy proximity to a large base of current and potential Dell customers," he said.

"This operation, in a region increasingly known for its advanced electronics hub, 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," said Mr. Anandan.

Mr. Ferrand said the company's strength and momentum with customers in India and APJ are impressive. In the second quarter of this year, Dell became the second-largest provider of computer systems in the region. The company has long been No. 1 in worldwide industry share.

The manufacturing plant in Tamil Nadu will join similar Dell APJ operations in Penang, Malaysia, and Xiamen, China. Globally, the company also builds computer systems in Austin, Texas, Nashville, Tenn., and Winston-Salem, N.C., in the United States; in Limerick, Ireland; and in Eldorado do Sul, Brazil. A second South American production site is currently under construction in San Paulo, Brazil.