Cisco to manufacture in India, targets $1 billion in combined exports and domestic production
Networking major Cisco said it will start manufacturing in India, a major step towards the expansion of its footprint in the country. This move is a part of Cisco’s strategy to create a diverse and resilient global supply chain and support India’s vision of becoming a global manufacturing hub. With this latest investment, Cisco will cater to the growing demand from customers in India and aims to drive more than $1 billion in combined domestic production and exports in the coming years.
The creation of a new manufacturing operation was announced by Cisco Chair and CEO Chuck Robbins in New Delhi, following a meeting with Prime Minister Narendra Modi, and a series of strategic engagements with S. Jaishankar, External Affairs Minister, Rajeev Chandrasekhar, Union Minister of State for Entrepreneurship, Skill Development, Electronics & Technology, B.V.R. Subrahmanyam, CEO of NITI Aayog, and K. Rajaraman, Telecom Secretary.
“Today, we are announcing strategic investments in Indian manufacturing capabilities as the next step in delivering cutting-edge technologies to our customers in India and across the globe,” said Chuck Robbins, Chair and CEO of Cisco. “Fueled by a rapidly developing digital economy, India is a focal point of innovation and business for Cisco, and we remain deeply committed to our partnerships here.”
As organisations in India and across the globe fast-track their digitisation, their technology needs are growing and evolving rapidly. “The manufacturing facility will build Cisco’s best-in-class technology, designed to provide flexible, cost-effective delivery of next-generation services and applications and support complex cloud computing environments. The products can meet companies’ dynamic demands as they strive to foster agility in an increasingly hybrid, digital-first world,” Cisco said in a statement.
Cisco is now building core manufacturing capabilities in India, including testing, development and logistics, and expanding in-house repair operations. In addition to supporting supply chain resiliency, reducing lead times, and elevating customer experience, this is expected to add further impetus to the local economy.
“India is of strategic importance for Cisco, and we continue to bet on India. Today’s announcement marks a significant milestone to power the next phase of growth for Cisco. This investment will enable us to bring state-of-the-art technologies to more people and businesses and help accelerate India’s transition into a leading digital economy,” said Daisy Chittilapilly, President, Cisco India & SAARC.
India is a key market for Cisco and its second largest R&D center outside the US. Since commencing operations in India in 1995, Cisco has been helping organisations in their digital transformation journeys in critical sectors like transport and agriculture.