HPE to manufacture $1 billion worth high-volume servers in India

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JULY 4, 2023

Hewlett Packard Enterprise (HPE) on Tuesday, July 4, announced its plans to manufacture approximately $1 billion worth of high-volume servers in the first five years of production from India.

In a meeting with the Minister for Electronics and Information Technology, Ashwini Vaishnaw, HPE India’s SVP and Managing Director Som Satsangi, along with CEO of VVDN Technologies Puneet Agarwal, shared the details of this initiative.

“With a rapidly growing electronic manufacturing ecosystem in India, HPE has partnered with Indian manufacturer VVDN Technologies to manufacture HPE’s products from its plant in Manesar in Haryana. This manufacturing operation will support the growing demand from customers in India and further strengthen and diversify HPE’s global supply chain,” the company said in a statement.

Vaishnaw welcomed HPE’s decision to start its manufacturing line in India, saying it will enhance domestic production capacities. “The recently announced Production Linked Incentive (PLI) Scheme 2.0 aims to make India a global hub for electronics system design and manufacturing (ESDM). We believe large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem,” he added.

India holds the largest workforce for HPE outside the United States, with its sprawling campus at Mahadevapura in Bengaluru serving as the global hub for many of HPE’s product development resources. The company’s R&D hub, located at the same campus, houses over 4,000 distinguished scientists, engineers, and research teams.

Antonio Neri, President and CEO of HPE, emphasised the significance of this move, saying, “Today’s announcement marks a significant milestone for HPE and reiterates our commitment to the Government of India’s ‘Make in India’ initiative for a self-reliant India. India is a strategic market for HPE’s business, talent, innovation — and now, manufacturing. Customers in India continue to turn to HPE to help them digitally transform, and our 14,000 team members here play a key role in driving our edge-to-cloud strategy. We are proud to build on our strong presence by establishing a manufacturing operation in this important country.”

Som Satsangi, SVP and Managing Director at HPE India, expressed the company’s long-term commitment to India, stating, “The decision to start manufacturing from India underscores HPE’s long-term commitment to India. India is expected to grow into a $1 trillion digital economy, and we believe that ‘Make in India’ will help accelerate this vision. With local manufacturing, HPE will be able to better serve the needs of our customers across industries and segments, from startups to SMBs to enterprise to government.”

In 2019, HPE announced a $500-million investment over five years to expand its operations and team member base in India. Since then, HPE said it has created 2,000 net new jobs in the country and invested in multiple new campuses and offices.

“With 300-plus HPE e-health centres across 22 states in India serving more than six million Indian citizens — and recently deployed cloud-enabled telemedicine automated teller machines for citizens on pilgrimage to four holy shrines in India — HPE continues to be a force for good,” it added.


Courtesy/Source: CNBCTV18