US-based Hewlett Packard Enterprise has signed an initial pact with VVDN Technologies under which they plan to produce high-end servers worth $1 billion in the next 4-5 years, Union Minister Ashwini Vaishnaw said on Tuesday.
The memorandum of understanding (MoU) was signed within 10 days of the India-US joint statement on co-production and development of technologies.
“It is a pleasure to share that HP Enterprise has agreed to produce high-end servers in India under the IT Hardware PLI scheme which was recently approved by our prime minister. Under the scheme, they have signed the first MoU with VVDN Technologies. They will have production worth $1 billion in the next 4-5 years," the Union Minister for IT and Telecom told PTI.
He said that production is expected to start from November this year.
The agreement has been signed under the government's production linked incentive (PLI) scheme which has an outlay of ₹17,000 crore over a period of five years.
HPE India SVP and managing director Som Satsangi along with VVDN technologies CEO Puneet Agarwal met Vaishnaw and shared the details of their pact.
HPE in a separate statement said that it plans to manufacture approximately $1 billion worth of high-volume servers in the first five years of production from India.
HPE President and CEO Antonio Neri said India is a strategic market for HPE's business, talent, innovation--and now, manufacturing.
“Customers in India continue to turn to HPE to help them digitally transform, and our 14,000 team members here play a key role in driving our edge-to-cloud strategy. We are proud to build on our strong presence by establishing a manufacturing operation in this important country,” Neri said.
HPE has its largest workforce outside the United States in India.
In 2019, HPE announced an investment of $500 million over five years in India to grow HPE's operations and team member base in India. HPE claims to have created 2,000 net new jobs in India and invested in multiple new campuses and offices.
“India is expected to grow into a $1 trillion digital economy, and we believe that ‘Make in India’ will help accelerate this vision. With local manufacturing, HPE will be able to better serve the needs of our customers across industries and segments, from startups to SMBs to enterprise to government,” Satsangi said.
Published - July 04, 2023 07:51 pm IST
