Chennai: Sixteen months after the announcement, global technology giant Cisco on Friday launched production in India through Flex, its contract manufacturer, aiming to drive over $1.3 billion annually in combined exports and domestic production. Cisco’s production unit located inside Flex’s Sriperumbudur facility will generate 1,200 jobs.
The facility, which was inaugurated by Union Communications Minister Jyotiraditya Scindia in the presence of Tamil Nadu Industries Minister T R B Raja and Cisco CEO Chuck Robbins, will manufacture Network Convergence System (NCS) 540 Series of routers in the first phase.
In the next phase, the company plans to manufacture printed circuit board assembly components with several layers, thousands of individual components, and industrial-grade products that are built to endure severe environmental conditions.
The routers that are manufactured at the Chennai facility will be exported to countries like Japan, Australia, Mexico, US, and Netherlands. Flex will be availing the production-linked incentive (PLI) for telecom and networking products on behalf of Cisco.
Though Cisco has had a robust presence in India since establishing its first R&D centre in Bengaluru in 1995, this is the first time that the company’s products are manufactured in the country. Robbins, in May 2023 after meeting Prime Minister Narendra Modi, announced plans to manufacture in India, the country the global giant chose as part of its China plus one strategy.
Cisco’s facility comes as a boost to the Tamil Nadu government which continues to attract investments in the electronics sector with the state already becoming the locus of Apple Inc’s phone manufacturing in India owing to the presence of companies like Foxconn, Pegatron, Corning, Tata Electronics, Salcomp, and Jabil, which entered the state early this month.
“Cisco’s facility is a testament in many forms. It is testament of India’s indigenous engineering capability, it is a testament of India’s manufacturing prowess,” Scindia said. He also urged companies like Cisco to plant their “foot firmly” in India which represents a “huge opportunity” as a telecom revolution unfolds.
The minister also said the Union Government is planning to set up a telecom manufacturing zone to focus on manufacturing telecom equipment in the country.
“We are planning to make it a plug and play model and we are already in talks with stakeholders regarding this. We are looking for anchor tenants and have approached telecom equipment manufacturers with regard to the telecom manufacturing zone,” Scindia said. He also added that the government has a couple of locations in mind for the new project but a final decision will be taken after consultations with all stakeholders.
Robbins said the inauguration of a manufacturing facility in Chennai marks a significant advancement in Cisco’s commitment to the region. “This expansion not only deepens our presence in India, but also strengthens our partnerships with customers, partners, and the government,” he added.
Raaja asked Cisco to enhance its capability in localising its supply and step up the company’s research and development capabilities in cities like Coimbatore and Madurai. “In one year, Cisco will realise that its choice of Tamil Nadu was the best decision it made. We welcome Cisco into the manufacturing behemoth of India,” Raaja added.