Cisco to build plant in India that will bring the company $ 1 billion / ServerNews

Cisco Systems start construction of a plant in India as part of a program to expand the global supply chain. According to Cisco CEO Chuck Robbins (Chuck Robbins), the plant will be put into operation in 12 months, and the total revenue from its products, including exports, will be $1 billion.

“We are announcing a strategic investment in Indian manufacturing facilities as the next step in providing cutting edge technology to our customers in India and around the world,” Robbins said at a press conference in New Delhi on Wednesday. “India is the hub of innovation and business for Cisco.” India already hosts Cisco’s second largest R&D center outside of the US.

  Image Source: Cisco

Image Source: Cisco

Establishing a manufacturing base for Cisco in India will help the company deliver its products faster to customers in a sector experiencing supply chain challenges. “While the Cisco initiative will not help solve the problem in the near future, since it will take 12 months to set up production, it will definitely help mitigate any shocks in the supply chain in the future,” IDC Vice President Sharath Srinivasamurthy said.

“In India, 5G rollout is happening at a pace that we have not seen anywhere else in the world. And it really created a great investment environment.” Robbins said. Srinivasamurthy said that as 5G adoption grows, the demand for next-generation secure networking equipment will grow. “Cisco seems to sense this opportunity to strengthen and expand its position in this field,” he noted.

“India has a good chance of becoming an important manufacturing hub for Cisco and this could be another successful high-tech manufacturing facility in India like Samsung.” says Pareekh Jain, chief analyst at Pareeh Consulting. Cisco has manufacturing facilities in 17 countries, including five in Asia: Korea, China, Taiwan, Malaysia, and Singapore.

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