At last, we all know that Dell is going to set up its plant in Tamil Nadu in India. Dell signed an agreement with the state government of Tamil Nadu yesterday and the plant will start manufacturing desktop computers within a few months. It won’t happen in 2006 but in the early part of 2007. I am quoting from a report of Washington Post:
“The new facility and related operations will be located at a 50 acre site at a technology park just outside the state capital Chennai, earlier known as Madras.
Dell has a market share of just 7 percent in India, and lags largely because of taxes that result in higher prices for its products. The Indian government imposes higher import taxes on fully assembled computers than computer parts, and Dell currently ships complete computers to India. A plant in India would help the company lower its tax bill, improve delivery time and cut logistics and transportation costs.
This will be Dell's third manufacturing plant in Asia, after those in Penang, Malaysia, and Xiamen, China.”
It is nice to see that India has become important enough to Dell that it opened it is setting up its third plant of Asia in India. Chennai is becoming an attractive place for foreign companies who like to set up manufacturing plants. You may wonder why Dell did not set up the plant in Bangalore. After all, Bangalore is the heart of Indian tech industry. Well, I guess that Bangalore has already been overcrowded and also Tamil Nadu government could offer good incentives to Dell.
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