Why Is Dell Pushing For Growth In India?
Tech major Dell seems to be focusing on India in big way. The company recently announced its new sales strategy aimed at getting a bigger market share in the country. The company is not just planning to offer cost-effective products to Indian customers, but also aims to develop customised products for the domestic market.
“We are rapidly moving our delivery and technical capabilities to India, from where we are servicing our global customers, be it helping desk services or application development,” Tom Sweet, Chief Financial Officer, Dell, told Business Line during his recent visit. “We are building our global leadership in India to help in the transformation of our global delivery business.”
Having come out of a grueling and fierce privatization process that valued the PC maker at $24.9 billion in October 2013, Dell India is becoming a centre stage for Dell worldwide.
Dell has a manufacturing unit in Chennai. Sweet said the company would scale it up if there is enough growth in the Indian market. “It will also depend on Government policies that support manufacturing and exports.”
“The company wants to make the India as one of the key market and is looking to shift nearly 50 percent of its global service-delivery capabilities to India from Texas,” said he said. India is among the top five markets in terms of revenue for the Texas-headquartered Dell.
In order to expand service business in India, recently Dell had appointed former MphasiS Executive Vice-President Ganesh Murthy as Vice-President and Chief Financial Officer of Dell Services, his appointment is a clear indication that Dell global wants to offload its service delivery model locally.
Besides services business, the company is looking for scaling up its investment in areas like R&D. Back home, the local operation of India has been on the growth curve, which is another reason for Dell HQ to expand its focus.
Sweet said “We are extremely happy with the progress we are making in India. The business is growing in double digits, we are now No. 1 in PC (personal computer) sales. We are optimistic about our future in India.”
On an annual basis, close to $2 billion from the Indian business operations. In the first quarter of this calendar year, Dell regained its top position in the Indian PC market after it ceded the position to Chinese rival Lenovo in 2012. According to IDC, which tracks PC shipments, Dell had a 23.1 per cent market share in the first quarter of the year followed by HP with 20.1 per cent.
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