Cisco systems, the US-based company that designs and sells networking equipment, has announced fresh investments for India, along with its support to the ‘Make in India’ initiative. Its outgoing chairman and CEO John Chambers, incoming CEO Chuck Robbins and Cisco India and SAARC President Dinesh Malkani made the announcements at a press event in New Delhi.
The top executives also spoke about their meeting with Prime Minister Narendra Modi.
Cisco said it wants to accelerates India’s manufacturing ecosystem and plans to hold a Cisco Design and Innovation Conference in Bengaluru in February 2016 to bring together over 75 of its key suppliers and partners to get the supply chain running in India.
The company also announced $60-million investment in India, including expansion of its facility in the country and the network academy. It announced plans for direct and indirect investment of up to $20 million over the next five years into the Cisco Networking Academy, with an additional $40 million for the next phase, according to a release.
Chambers spoke on how India’s engineering workforce makes it an ideal market for future investments. “We are absolutely committed to the ideal of a Digital India. Our Cisco campus in India is our second headquarter. We believe that the current government is really committed to the idea of digital India,” he said.
Incoming CEO Robbins pointed out that currently in India, Cisco’s annual investment was around $1.7 billion and its revenue stood at $1.1 billion. “Of $1.7 billion, around $250 million is spent on our facilities while the rest is spent on people in India,” said Robbins.
As for the time-frame and the products to be manufactured in India, Chambers said the aim will be to start production of broadband products and bag defence contracts. The company does not have any limits on what will be produced in India.
“Once we start the process of streamlining and getting our ecosystem together in India, we hope to start producing in the quarters after that,” said Chambers. Cisco’s executives stressed that while the current government was pushing for manufacturing in India, it would take time to set up the logistics for this.
Cisco’s manufacturing has been based in China for the last 20 years, but the company’s top executives said that in the light of the government’s Digital India campaign, they were betting big on the country.
On their vision and role in smart cities, Chambers pointed out that red tape and bureaucracy were the biggest constraints, although in India the government’s approach was unique as it plans to target over 100 cities and over 250,000 villages.