Dell to Sell its Factories?

by Abhinna Shreshtha    Sep 15, 2008

According to reports, the world’s largest PC manufacturer - Dell, is contemplating selling most of its manufacturing plants to contract manufacturers. If true, this would be a significant step for Dell, which has till now refrained from going the way of competitors like HP. caught up with Sameer Garde, country manager of Dell, at a round table organized in a suburban hotel last week. Even as rumors fly around, Garde said the company still expects a lot of growth from India and especially their manufacturing plant in south India that went operational just last year.

Garde refused to be drawn into making a comment, stating that the company did not like to remark on market speculation. He however said, “We have made significant investments in India recently and India continues to be a strategically important region for us. We are expecting a lot more growth from India.”

While Dell may not have conclusively lain to rest the rumors surrounding the closure of its factories, Garde’s statement that the company is increasing investments in the manufacturing plant does bring in some relief.

In related news, Dell acquired EqualLogic - an iSCSI storage company earlier this year. With this acquisition, Dell has launched its PS series of SAN solutions. The question to be asked is how this will affect Dells’ longstanding relation with storage vendor - EMC.

Dell is however quick to quash at least this rumor. Pallab Talukdar director (enterprise business) for Dell said, “The Dell EqualLogic portfolio is completely different from what we are offering through our partnership with EMC. They target different segments and are also differently priced, with the EMC portfolio being more expensive. As such, we do not see the acquisition of EqualLogic to affect our partnership with EMC in anyway.”

Related links:
Garde Country GM for Dell