HPE plans manufacturing of servers in India

Hewlett Packard Enterprise (HPE) has revealed its plans to initiate manufacturing of high-volume servers worth $1 billion in India over the course of the first five years.
HPE for telecomsTo carry out this manufacturing operation, HPE has partnered with VVDN Technologies, a domestic manufacturer. The production will take place at VVDN’s facility in Manesar, located in Haryana. This move aims to meet the increasing demand from customers in India while strengthening and diversifying HPE’s global supply chain.

Ashwini Vaishnaw, the Union IT Minister, expressed appreciation for HPE’s decision, emphasizing the positive impact it will have on domestic production capacities. Vaishnaw also highlighted the importance of the recently announced Production Linked Incentive (PLI) Scheme 2.0, which aims to establish India as a global hub for Electronics System Design and Manufacturing (ESDM). The minister believes that large-scale IT hardware manufacturing will contribute to the growth and development of the overall manufacturing ecosystem.

India holds strategic significance for HPE, with the country being home to its largest workforce outside of the United States. HPE’s expansive campus in Mahadevapura, Bengaluru, accommodates numerous product development resources and serves as a hub for over 4,000 scientists, engineers, and research teams.
Server market forecast from IDCAntonio Neri, President and CEO of HPE, emphasized India’s importance as a market for HPE’s business, talent, innovation, and now, manufacturing. Neri highlighted that Indian customers rely on HPE for digital transformation, and the company’s 14,000 team members in India play a crucial role in driving their edge-to-cloud strategy.

In 2019, HPE announced a $500 million investment over five years in India to expand its operations and increase its team member base. Since then, HPE has created 2,000 new jobs in the country and invested in multiple new campuses and offices.

Som Satsangi, Senior Vice President and Managing Director at HPE India, expressed optimism about India’s expected growth into a $1 trillion digital economy. Satsangi believes that local manufacturing through the “Make in India” initiative will accelerate this vision. By manufacturing locally, HPE aims to better serve the needs of its customers across various industries and segments.