The plan is to start with the manufacturing of rack, tower and blade servers by the end of this calendar year, a senior government official said.
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Flex India’s manufacturing unit, located in the Oragadam special economic zone (SEZ) in Chennai, is where the manufacturing will take place, another source said, adding that it was the only unit which had “manufacturing capacity enough to handle the volume of products Cisco is aiming for”.
“They have had regular meetings with the state as well as central government officials. Cisco executives had also met state and central government officials in Davos. They have indicated that they will manufacture here,” a source close to the development told ET.
In its statement, Cisco said that it was “partnering with a contract manufacturer in southern India”.
“The manufacturing facility will build Cisco’s best-in-class technology, designed to provide flexible, cost-effective delivery of next-generation services and applications, and support complex cloud computing environments,” the company said in the statement. Cisco, however, refused to reveal the partner it was working with or the exact location of the plant.
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Flex India did not respond to ET’s queries seeking to know the details of the partnership it had forged with Cisco.On May 10, Cisco had announced its intent to start manufacturing in India. The company’s chief executive officer Chuck Robbins had then said that they would aim for $1 billion worth of domestic production and exports over the next few years from the new manufacturing unit in Tamil Nadu. The Tamil Nadu unit, which is likely to start rolling out products over the next 12 months, is likely to create roughly 1,200 jobs in the manufacturing ecosystem, Robbins had said.