May 26, 2006
Dell : On track to further reduce their Austin workforce
Seriously, I had to look pretty hard for this story as it disapeered from the last few spots the Statesmen posted it. So, I'm reprinting it in the supersize just in case Mikey calls and demands they pull the story
The company is expected to make an announcement about the location of the plant in India over the next few weeks, said Paul-Henri Ferrand, Dell's general manager for South Asia."The facility will be up and running by end of the year," Ferrand said. "We couldn't be happier as it will finally give us a chance to get rid of some of our rather expensive Central Texas workforce while still enjoying the abatements and other tax breaks the State of Texas and the Cities of Round Rock and Austin lavished on us. Did you know some of our employees even think they should get health insurance? Can you believe that?"
The plant, he said, will enable "substantial" cost cuts and help the company compete in the Indian market, where it trails rival Hewlett Packard Co., Indian computer maker HCL Technologies Ltd. and Lenovo of China.
Then there is another reason for opening a plant in India... they're working on getting around Indian taxes (is that all these guys think about?)
Dell currently 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 avoid some taxes, improve delivery time and cut logistics and transportation costs.
Computer sales in India are expected to increase to 10 million annually over the next three to five years.
Honestly, manufacturing to grow the business is great. I'm all for this... however, shuttering ops centers here only makes people hate you guys. Which is why HP is doing so much better than Dell now.
Computer maker Dell sees plant in India ready by year-end
By RAJESH MAHAPTRA
AP Business Writer
NEW DELHI — Dell Inc. said Thursday its plans to build a manufacturing plant in India have made progress and that it would be ready by the end of this year, helping the personal computer maker beef up its presence in one of the world's fastest-growing markets.
The company is expected to make an announcement about the location of the plant in India over the next few weeks, said Paul-Henri Ferrand, Dell's general manager for South Asia.
"The facility will be up and running by end of the year," Ferrand said.
The plant, he said, will enable "substantial" cost cuts and help the company compete in the Indian market, where it trails rival Hewlett Packard Co., Indian computer maker HCL Technologies Ltd. and Lenovo of China.
Dell didn't give details about the capacity of the plant, or how it could come into operation in such short time. But Judy Low, a company spokeswoman, said Dell started production in China in just six months from announcing to set up a plant there.
She also said Dell had done well in selling its products here. Its revenues from India increased to $80 million in the quarter ending April, up 40 percent from the same period a year ago.
Still, the Round Rock, Texas-based company has a market share of just 5 percent in India.
Dell currently 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 avoid some taxes, improve delivery time and cut logistics and transportation costs.
Computer sales in India are expected to increase to 10 million annually over the next three to five years.
___
May 25, 2006 - 9:46 a.m. Copyright 2006, The Associated Press. The information contained in the AP Online news report may not be published, broadcast or redistributed without the prior written authority of The Associated Press.
Posted by mcblogger at May 26, 2006 10:22 AM
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