Cisco, a US-based network gear maker, has announced plans to manufacture products, including routers and switches, in Tamil Nadu to cater to the increasing demand from Indian customers. The move is also aimed at diversifying its global supply chain. The company’s CEO, Chuck Robbins, has outlined plans targeting $1 billion from combined exports and domestic production. Robbins met with Prime Minister Narendra Modi during his visit to India and held discussions with different officials, including the External Affairs Minister, S. Jaishankar, and the Telecom Secretary K Rajaraman. The quantum of investment that the company will infuse into the country is not disclosed.
Cisco’s Focus on Indian Market
India, fueled by a rapidly developing digital economy, is a focal point of innovation and business for the US networking giant. The manufacturing facility will build Cisco’s technology, geared to provide cost-effective delivery of next-generation services and applications and support complex cloud computing environments. The company is building core manufacturing capabilities in India, including testing, development, and logistics, and expanding in-house repair operations. It aims to support supply chain resiliency, reduce lead times, and elevate customer experience while adding impetus to the local economy. Cisco’s investment in India marks a significant milestone to power the next phase of growth for the company.
Cisco’s Production Plans for India and Global Markets
Cisco’s manufacturing in India will be through its contract manufacturers and partners. The company plans to have the first products off the line in 12 months and will expand to a wider array of Made-in-India products over a period of time. The manufacturing initiative will focus on building an ecosystem of local suppliers. The company currently has a 17-nation global manufacturing footprint and plans to leverage Made-in-India products for exports to the region and even Europe. Cisco’s previous manufacturing efforts in India were focused on the domestic production of Cisco products, which were closed due to a lack of consistent demand and a supporting ecosystem.
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