Cisco Provides Update on US $1.1 Billion Investment in India
Company Expects to Triple Its Workforce in India Over Next Three to Five Years
MUMBAI, India, and SAN JOSE, Calif., Dec. 6, 2006 - Cisco® today announced that it is on course with its US $1.1 billion investment in India that it announced in October 2005 and is expanding its commitment to its initiative in India. The company also expects to triple its workforce in India over the next three to five years. John Chambers, Chairman and CEO of Cisco Systems, discussed the company’s investment progress in India today with the Honorable Minister of Communications and Information Technology, Shri Dayanidhi Maran, a year after outlining its latest investment plan with the nation.
“India is a very important market for Cisco’s global growth strategy,” said Chambers. “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.”
Following is an update on Cisco’s US $1.1 billion investment plan in India:
Cisco has allocated US $50 million for a new research and development campus in Bangalore which is expected to be completed by June 2007. These R&D activities continue to be complemented by work done by Indian strategic partner companies.
Cisco continues to invest in growing its workforce and the training and development of its employees. Cisco has allocated more than US $750 million towards R&D activities, training and development in India over the next three years. In addition, Cisco will continue to expand its relationships with its strategic partners in India.
Cisco Systems Capital has deployed nearly US $50 million out of a US $150 million fund to provide leasing and other financial solutions to Cisco customers and partners. Cisco Systems Capital recently earmarked another US $10 million for near-term deployment.
Cisco is committed to investing in innovation in India and has allocated US $100 million toward venture capital investments in high-growth, early stage companies based in India. In the last year, Cisco invested US $5 million in Indiagames and Bharti Telesoft and expects to invest another US $25 to $30 million over the next few months in companies involved in broadband content and digital media.
Cisco continues to expand its customer support operations in India and plans to invest US $100 million in growing its technical services capabilities, spare parts depots and channel development. Cisco recently established a 24x7 premium spare depot in Chandigarh.
Cisco has begun contributing products and services for rural connectivity and the development of a BSNL lab in Chennai and has allocated US $10 million towards these efforts.
The company continues to expand the Cisco Networking Academy Program in India, which operates 153 networking academies across 23 States and Union Territories. Over the last year, Cisco has added 5,683 new students to the program.
Cisco has announced plans to launch a manufacturing pilot facility in Chennai. The facility initially will manufacture certain products for the domestic Indian market. In line with the companys outsourced manufacturing model, Cisco has selected one of its global manufacturing partners, Foxconn, to work with the company on the facility.
“Cisco’s growing investments across all its operation areas in India is a vindication of the increasingly self sustaining ecosystem that the country provides for businesses to thrive and compete in a globalised economy. Additionally, Cisco is also supporting initiatives aimed at using Information and Communication Technologies to stimulate economic and social development. The use and application of ICT remains the most powerful engine for economic growth,” said Mr. Dayanidhi Maran, Minister of Communications and IT.
“We welcome global IT majors such as Cisco that are committed to India’s economic development and provide greater opportunities for our people,” he added.
Cisco first established operations in India in 1995 and today employs over 2,000 people in the country in its Global R&D center in Bangalore and sales offices in New Delhi, Mumbai, Bangalore, Chennai, Kolkata, Pune, Hyderabad and Colombo, Sri Lanka.
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Mr. Varghese M. Thomas
Cisco Systems India Pvt. Ltd
Tel: +91 80 4159 3226 email@example.com