Cisco inaugurates India router manufacturing factory in Chennai

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Cisco inaugurates India router manufacturing factory in Chennai

Cisco inaugurates India router manufacturing factory in Chennai

Industry News
Oct 01,24

This first phase of the project is expected to generate 1,200 jobs and bring in approximately $1.3 billion from both domestic and international markets.

Cisco inaugurates India router manufacturing factory in Chennai

Cisco has officially launched its production facility in India, partnering with contract manufacturer Flex at the Sriperumbudur complex, 16 months after the initial announcement. The dedicated line will produce the 540 Series routers, a key component of Cisco's networking convergence system.

This first phase of the project is expected to generate 1,200 jobs and bring in approximately $1.3 billion from both domestic and international markets. The facility was inaugurated by Union Communications Minister Jyotiraditya Scindia, alongside Tamil Nadu Industries Minister T R B Raja and Chuck Robbins, CEO, Cisco. Routers manufactured at this Chennai facility will be exported to countries including Japan, Australia, Mexico, the U.S., and the Netherlands. Flex will also benefit from production-linked incentives (PLI) for telecom and networking products on behalf of Cisco.

While Cisco has had a strong presence in India since establishing its first R&D centre in Bengaluru in 1995, this marks the first time its products will be manufactured locally. Robbins announced the manufacturing plans in May 2023 following discussions with Prime Minister Narendra Modi, aligning with Cisco’s "China plus one" strategy.

Scindia praised the new facility, emphasising its significance as a testament to India's engineering and manufacturing capabilities. He encouraged companies like Cisco to firmly establish their presence in India, which is seen as a significant opportunity amid a telecom revolution.

The Union Government is also exploring the establishment of a telecom manufacturing zone to enhance local production of telecom equipment, with plans for a plug-and-play model already in discussion with stakeholders.

Robbins highlighted that the Chennai facility is a major step forward in Cisco’s commitment to the region, reinforcing partnerships with customers, partners, and the government. Minister Raja urged Cisco to enhance its local supply chain and expand its R&D efforts in cities like Coimbatore and Madurai, expressing confidence that Cisco's decision to invest in Tamil Nadu will prove advantageous.

(Deccan Herald)