JOIN USCisco on Thursday said it is committed towards manufacturing in India and will invest $1.74 billion in the country this year.
The company, which pumps in $1.7 billion every year, will invest an additional $60 million on training and facility expansion. Of this, $40 million will be spent on expansion of its facilities this year, while the $20 million intended to train 1,20,000 students would be spread over five years.
“We are investing big in India. We are committing manufacturing in India. We need to skill people here for the jobs,” Cisco Systems Chairman and CEO John T Chambers said here.
“We have revenues of about $1.1 billion from India and we expect our India business to grow in double-digits over next four-five years,” Chambers said.
Chambers, who is stepping down as Cisco’s CEO on July 26, along with CEO Designate Chuck Robbins, said they met Prime Minister Narendra Modi on Thursday morning and discussed the company’s manufacturing and business commitment for India under the Digital India programme.
“We met the Prime Minister this morning and he was very clear about his vision for people and how technology can change life of individual here. India is our second headquarters and Prime Minister today said that make it your home,” Chambers said.
Limitless opportunities
Chambers said the company has not identified products that will be manufactured in India but there is no limit on the range that can be made here.
“We can do manufacturing in two quarters once we have process, taxes, and regulation lined up. It is not for Cisco only but for the entire ICT industry,” the CEO said. Chambers, however, did not explain regulatory and tax structure-related changes that the company expects.
“It will depend probably on development of broadband, defence contracts...in the country,” he said. Cisco leaders also met Telecom Minister Ravi Shankar Prasad and expressed commitment to partner in the Digital India programme.
Chambers said Cisco will organise a conclave of 75 of its key suppliers in Bengaluru in February, to drive collaboration on product development here.