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Cisco announces updates on $1.1B investment in India

Posted: 11 Dec 2006 ?? ?Print Version ?Bookmark and Share

Keywords:Cisco? R&D? India?

Cisco Systems Inc. reported the on-going implementation of its $1.1 billion investment in India, citing key projects such as strengthen its presence and R&D operations, as well as plans triple its workforce in the region over the next three to five years.

Cisco Chairman and CEO John Chambers discussed the investment progress with Shri Dayanidhi Maran, Minister of Communications and Information Technology in India, a year after outlining its investment plan.

"India is a very important market for Cisco's global growth strategy," Chambers said. "With the strong support of its government, India is committed to economic growth and development with a focus on building out broadband infrastructure, fostering a first-class educational system and creating a favorable environment for innovation and partnership. Cisco is committed to its on-going investment plan in India, as well as its partnership with the Indian government."

Key investmentsAt present, Cisco has allocated $50 million for a new R&D campus in Bangalore, which is scheduled for completion by June 2007. The company is collaborating with its strategic partner companies in India for the R&D efforts. For its local workforce, which Cisco plans to increase threefold, the company has allocated over $750 million towards R&D activities, training and development over the next three years. At present, Cisco employs over 2,000 people in its R&D center in Bangalore and sales offices in New Delhi, Mumbai, Bangalore, Chennai, Kolkatta, Pune, Hyderabad and Colombo, Sri Lanka.

Cisco also plans to launch a manufacturing pilot facility in Chennai. The facility will initially manufacture certain products for the local market. In line with the company's outsourced manufacturing model, Cisco tapped its global manufacturing partner Foxconn to work on the facility.

Meanwhile, Cisco Systems Capital has deployed about $50 million out of a $150 million fund to provide leasing and other financial solutions to its customers and partners. Recently, the division earmarked another $10 million for near-term deployment.

Cisco has also allocated $100 million towards venture capital investments in high-growth, early stage companies based in India. Last year, the company invested $5 million in Indiagames and Bharti Telesoft, and expects to invest another $25 to $30 million over the next few months in companies involved in broadband content and digital media.

To continue expanding its customer support operations, Cisco will invest $100 million in growing its technical services capabilities, spare parts depots and channel development. Cisco recently put up a 24-by-7 premium spare depot in Chandigarh.

Meanwhile, the company's Networking Academy Program, which operates 153 networking academies across 23 states and union territories in India, is up for expansion. Last year, 5,683 new students joined the program.

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