Cisco Systems to Construct Manufacturing Plant in India as Part of Global Supply Chain Expansion
Cisco Systems has announced plans to build a new manufacturing facility in India as part of its global supply chain expansion strategy. According to Cisco CEO Chuck Robbins, the plant is expected to be operational within 12 months, generating a total revenue of $1 billion from the production, including exports.
“We are announcing strategic investments in Indian manufacturing capabilities as the next step in providing advanced technologies to our customers in India and around the world,” Robbins stated at a press conference in New Delhi on Wednesday. “India is a center of innovation and business for Cisco.”
India already hosts Cisco’s second-largest research and development center outside the United States.
The establishment of a manufacturing base in India will enable Cisco to deliver its products more swiftly to clients in a sector experiencing supply chain challenges. “While Cisco’s initiative won’t resolve the issue in the near future, as production setup will take 12 months, it will definitely help soften any future supply chain shocks,” said IDC Vice President Sharath Srinivasamurthy.
Robbins also noted the rapid deployment of 5G in India, stating, “The pace at which 5G is being rolled out in India is something we haven’t seen anywhere else in the world. It has truly created a great environment for investment.” Srinivasamurthy added that as 5G adoption grows, demand for next-generation secure networking equipment will rise. “Cisco seems to sense the opportunity to strengthen and expand its positions in this area,” he remarked.
Pareekh Jain, Principal Analyst at Pareekh Consulting, believes that India has a good chance of becoming a significant manufacturing hub for Cisco, potentially joining the ranks of successful high-tech manufacturing ventures in India, such as Samsung. Cisco currently has manufacturing capabilities in 17 countries, including five in Asia: South Korea, China, Taiwan, Malaysia, and Singapore.
- I'm Vasyl Kolomiiets, a seasoned tech journalist regularly contributing to global publications. Having a profound background in information technologies, I seamlessly blended my technical expertise with my passion for writing, venturing into technology journalism. I've covered a wide range of topics including cutting-edge developments and their impacts on society, contributing to leading tech platforms.
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