US Tech Giant Hewlett Packard Embraces 'Make In India': Plans to Manufacture High-Volume Servers Under PLI 2.0

US tech giant Hewlett Packard Enterprise (HPE) announced on Tuesday (4 July) that it has partnered with Indian manufacturer VVDN Technologies to begin manufacturing some of its high-volume servers in India.

This move aims to enhance India's domestic production capacities and comes after Prime Minister Narendra Modi's recent state visit to the US.

As part of the partnership, HPE plans to manufacture around $1 billion worth of high-runner servers in India within the first five years of production.

"With a rapidly growing electronic manufacturing ecosystem in India, HPE has partnered with Indian manufacturer VVDN Technologies to manufacture HPE’s products from its plant in Manesar in Haryana," the company said in a statement.

Ahead of the announcement, officials of HPE and VVDN Technologies met Union Electronics and IT Minister Ashwini Vaishnaw on Tuesday to share details of the initiative. 

Vaishnaw welcomed the US tech giant's decision to start manufacturing in India.

“We welcome HPE’s decision to start their manufacturing line in India, as it will enhance domestic production capacities,” said Vaishnaw, according to the statement.

“The recently announced Production Linked Incentive (PLI) Scheme 2.0 aims to make India a global hub for Electronics System Design and Manufacturing (ESDM). We believe large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem," he added.

“Today's announcement marks a significant milestone for HPE and reiterates our commitment to the Government of India’s ‘Make in India’ initiative for a self-reliant India,” said Antonio Neri, president and CEO, HPE.

“India is a strategic market for HPE’s business, talent, innovation – and now, manufacturing. Customers in India continue 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 added.

According to the statement, HPE has its largest workforce outside the United States in India.

HPE’s largest campus in the world at Mahadevapura in Bengaluru is home to many of HPE’s worldwide product development resources, the company said, adding that more than 4,000 of HPE’s most distinguished scientists, engineers, and research teams are based out of HPE’s R&D hub at this campus.