The multinational digital communications technology conglomerate corporation, Cisco Systems, Inc., has vast operations worldwide. For instance, the company manufactures networking switches and routers in China, Taiwan, Korea, Singapore, and Malaysia. Moreover, it also has more than 225 sales and support offices in 75 countries.
Last Wednesday, Cisco announced a significant move it is undertaking that would largely shape its operations. The company said it will start manufacturing in India and aim to drive over $1 billion in combined domestic production and exports in the coming years.
“This move is a part of Cisco’s strategy to create an even more diverse and resilient global supply chain and support India’s vision of becoming a global manufacturing hub,” said Cisco in its official news release.
The South Asian country is strategically vital for Cisco. India is a crucial company market and its second-largest R&D center outside the United States. Since it kicked off operations in India back in 1995, Cisco has helped the country digitize at scale and speed. The company also accelerated the transformation of essential sectors such as agriculture and transport in this country. It also helped India build a skilled workforce via the Cisco Networking Academy program.
Up and running in 12 months’ time
Cisco’s chair and chief executive officer, Chuck Robbins, spoke to news outlets and said the company has decided to build a manufacturing facility in Tamil Nadu’s Chennai. He also said he hopes the have this facility up and running within the next 12 months.
Tamil Nadu is one of India’s states located in the country’s southern region. Chennai is a city in India and the capital of the Tamil Nadu state.
“We are going to start with manufacturing a couple of our high-volume products and then we will expand the product portfolio from there,” Robbins said. “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.”
Best-in-class technology
The new manufacturing facility in India will aim to build the company’s best-in-class technology, designed to provide profitable and flexible delivery of next-generation applications and services, and support complex cloud computing ecosystems.
Additionally, Cisco is now currently building core manufacturing capabilities in the South Asian country. These include development and logistics, testing, and expanding repair operations in-house.
The Cisco CEO also suggested that India could contribute to nearly 10 percent of the company’s revenue over the next few years.
