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HPE to manufacture around $1 billion high-volume servers in India

It has partnered with Indian manufacturer VVDN Technologies to manufacture these products from its Manesar plant

HPE to manufacture around $1 billion high-volume servers in India
POSTED ON July 05, 2023 9:52 AM

Hewlett Packard Enterprise (HPE) announced plans to begin manufacturing some of its high-volume servers in India. Som Satsangi, SVP and managing director, HPE India, along with Puneet Agarwal, CEO, VVDN Technologies, met Ashwini Vaishnaw, Minister for Railways, Communications, Electronics and Information Technology, Government of India, to share details of the initiative. 

HPE plans to manufacture approximately $1 billion worth of high-runner servers in the first five years of production from India. With a rapidly growing electronic manufacturing ecosystem in India, HPE has partnered with Indian manufacturer VVDN Technologies to manufacture HPE’s products from its plant in Manesar in Haryana. This manufacturing operation will support the growing demand from customers in India and further strengthen and diversify HPE’s global supply chain.

“We welcome HPE’s decision to start their manufacturing line in India, as it will enhance domestic production capacities,” said Minister Vaishnaw. “The recently announced Production Linked Incentive (PLI) Scheme 2.0 aims to make India a global hub for Electronics System Design and Manufacturing (ESDM). We believe large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem.”

“Today's announcement marks a significant milestone for HPE and reiterates our commitment to the Government of India’s ‘Make in India’ initiative for a self-reliant India,” said Antonio Neri, president and CEO, HPE. “India is a strategic market for HPE’s business, talent, innovation and now, manufacturing. Customers in India continue turn to HPE to help them digitally transform, and our 14,000 team members here play a key role in driving our edge-to-cloud strategy. We are proud to build on our strong presence by establishing a manufacturing operation in this important country.”    

HPE has its largest workforce in India outside the United States. Its largest campus in the world is at Bengaluru’s Mahadevapura, which is home to many of the company’s worldwide product development resources with over 4,000 of its scientists, engineers, and research teams based at this campus.

“The decision to start manufacturing from India underscores HPE’s long-term commitment to India,” said Satsangi. “India is expected to grow into a $1 trillion digital economy, and we believe that ‘Make in India’ will help accelerate this vision. With local manufacturing, HPE will be able to better serve the needs of our customers across industries and segments, from startups to SMBs to enterprise to government.”

HPE is working across various central and state government departments, helping them in their digital transformation journey as they outline their population-scale initiatives.

In 2019, the company announced an investment of $500 million over five years in India to grow its operations and team member base in India. Since then, the tech major has created 2,000 net new jobs in India and invested in multiple new campuses and offices. 

With over 300 HPE e-health centers across 22 states in India serving more than six million Indian citizens, the company also deployed cloud-enabled telemedicine automated teller machines for citizens on pilgrimage to four holy shrines in India recently.

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