Michael Dell, Chief Executive of global computer major Dell, on Tuesday said the company’s annual revenues from India are growing at 100 per cent, faster than the market rate.
“Our India business is growing 100 per cent. We are growing faster than the market, which is growing less than 100 per cent. We see enormous opportunities of growth in India,” said Mr. Dell, who is currently on a visit to India to chalk out strategies for further growth in the region.
Dell does not give country specific actual financial figures.
Sameer Garde, MD and General Manager (Large Enterprises) Dell said, “India contributes two per cent of Dell’s global revenues and has an annual run rate revenue of USD 1 billion, which means every quarter the company has a little over USD 250 million revenue.”
Dell said its India operations with 23,000 employees, house one-fourth of the company’s total global staff strength — comprising its hardware and services business as well as the employees of U.S.-based Perot Systems, which the computer giant acquired last year for $ 3.9 billion.
The CEO of the Texas-based company sees demand for computers and servers picking up with the phasing out of recession and enhancement of the company’s service capabilities following its acquisition of Perot System.
“Demand for (software) services is high... we don’t have to look for customers. We are on path to create more verticals. Like we can go after infrastructure management. We look at that service which is scalable,” Mr. Dell said.
Dell Computer, which makes laptop, desktop and servers, is the second biggest player in India after HP, in terms number of units sold, and is in the process of expanding its operations in the country in a bid to grab more customers in the large and small enterprises segment.
Dell’s total revenue in the quarter ended January 29 was $ 14.9 billion, an 11 per cent increase from a year ago and a 16 per cent sequential gain. Revenue improved in all of Dell’s business segments as the company consolidated results from the former Perot Systems for the first time.
Asserting that the company has 13 per cent market share in India, Mr. Garde said over the last two years Dell’s presence has grown rapidly to take the No. 2 position in the Indian PC market in the fourth quarter, from 11.3 per cent in the third quarter of 2009.
He also claimed that the company has become the number 1 player in the Indian NoteB market, with a market share of 26.3 per cent from 22.2 per cent in Q3 2009.
Dell sees India as a vital part of it global strategy, identifying it as among the key emerging markets along with the other BRIC (Brazil, Russia, India, China) countries. The major verticals contributing to this growth were the SMB and Consumer businesses.