Cisco to manufacture in India; CEO Chuck Robbins says country's momentum, pace of digitisation incredible

Global technology giant Cisco on Wednesday announced it would begin manufacturing in Tamil Nadu as part of the efforts to diversify its global supply chain by setting a target of $1 billion in combined domestic production and exports in the coming years.

The company is likely to manufacture switching networks and router platforms at the India plant, which will be up and running in just over a year.

Tamil Nadu Industries Minister Thangam Thennarasu told DH that Cisco will set up its manufacturing unit near Chennai, but refused to divulge details about the amount to be invested by the US firm in India.

In a statement, CISCO said the investment in India is aimed at creating a diverse and resilient global supply chain and support India’s vision of becoming a global manufacturing hub.

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"Today, we are announcing strategic investments in Indian manufacturing capabilities as the next step in delivering cutting-edge technologies to our customers in India and across the globe," Chuck Robbins, chair and CEO, Cisco, said.

The manufacturing facility will build Cisco’s best-in-class technology, designed to provide flexible, cost-effective delivery of next-generation services and applications and support complex cloud computing environments, the statement said.

It added that the products can meet companies’ dynamic demands as they strive to foster agility in an increasingly hybrid, digital-first world. The announcement came after Robbins met Prime Minister Narendra Modi, External Affairs Minister S Jaishankar and top Union Government officials.

Thennarasu said the Tamil Nadu government held several rounds of talks with Cisco in the US and at the World Economic Forum in Davos earlier this year to set up the firm’s manufacturing unit in the state. “We kept pursuing the Cisco team and we are very happy that the technology giant has chosen Tamil Nadu in India. This is yet another proof that the industrial ecosystem in the state is excellent,” the minister told DH.

He added that the investment pledge by Cisco augurs “very well” for investors’ sentiment in Tamil Nadu, especially months before the state is set to host the third edition of Global Investors’ Meet in January 2024.

The company will now be building core manufacturing capabilities in India, including testing, development and logistics, and expanding in-house repair operations. In addition to supporting supply chain resiliency, reducing lead times, and elevating customer experience, this will add further impetus to the local economy, the statement added.

Daisy Chittilapilly, President, Cisco India & SAARC said India is of strategic importance for Cisco, and the company continues to bet on India.

“Today's announcement marks a significant milestone to power the next phase of growth for Cisco. This investment will enable us to bring state-of-the-art technologies to more people and businesses and help accelerate India’s transition into a leading digital economy,” she said

India is a key market for Cisco and home to its second largest R&D centre outside the US.