Dell bullish on market in India

Dell, the world’s biggest personal computer maker, on Monday said it would consider building a manufacturing facility in India as it seeks to capitalise on the subcontinent’s growing market potential.

Kevin Rollins, chief executive, told reporters in New Delhi on Monday that India, long recognised for its potential as a back-office and manufacturing hub, was “a huge market in its own right”.

“India is not only a resource base for talent, but is now also a market space,” Mr Rollins said. “Our intent is to be here for the long term. The time is right to consider setting up a manufacturing site in India.”

Mr Rollins’s comments came as Dell announced it would create up to 1,000 new jobs by the year-end by opening a fourth call centre in the country.

India, China and eastern Europe have emerged as key sources of growth for Dell, which has been struggling to hold on to market share amid growing competition from Asian competitors such as China’s Lenovo and Taiwan’s Acer.

Romi Malhotra, managing director at Dell’s Indian operations, said the company would increase the number of staff in India from 10,000 to 15,000 over two years. Dell said it would double the number of product engineers it employs in India to 300 by 2008.

Mr Rollins said Dell had just a 3 to 4 per cent market share in India, compared with about 10 per cent elsewhere in Asia.