Cisco eyes India as its manufacturing hub

Cisco is looking at India as a manufacturing hub in near future. The company aims at catering to markets like India, SAARC, Middle East and Africa from this facility, highly placed sources in the industry said.

The company is in advance discussions with EMS players like Flextronics, Jabil Circuit and Foxconn. Cisco India is planning to be the manufacturing hub for complete suite of products be it routers, switches, WLAN, UC, Set Top Box, videoconferencing and others.

According to industry sources, the company is in advance stage of discussions with government and EMS players. With government, Cisco India is sorting out issues with respect to transportation and is seeking concessions with respect to manufacturing.

Cisco CEO Jaohn chambers, in his recent visit to India, had met telecom minister Kapil Sibal and several industry leaders in the manufacturing field, in this regard, a source revealed.

When contacted a Cisco spokesperson based in India said, “as of now the company have no manufacturing plans in India.”

The company relies on EMS or contract manufacturers for all their manufacturing needs. The contract manufacturer takes care of quality, cost, delivery requirements, as well as manufacturing process terms such as continuity of supply; inventory management; flexibility regarding capacity; quality and cost management; oversight of manufacturing and conditions for use of intellectual property.

In FY 2012-13, Cisco India has grown by 18.5 percent to register revenues of Rs 8,408 crores (as per Voice&Data). In FY 2012-13, the company has done extremely well in set top box, WLAN, switch, router, unified communications and video conferencing equipment.

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