The US networking equipment giant hopes the new plant in Chennai will help drive annual revenue from the Indian operations to more than $1.3 billion besides broadening its diverse and resilient supply chain.
Cisco has partnered with Flex for building the Chennai factory to produce advanced telecom technologies. The facility will initially focus on Cisco’s Network Convergence System (NCS) 540 Series of routers, representing the first phase of the company’s multi-year investment plan. Chennai will be the exclusive site for Cisco globally to make these products, according to senior management executives.
They added that significant innovation and technical advancements are planned for the next phase including producing printed circuit board assembly components with several layers. This would allow Cisco to broaden its technical manufacturing capabilities in India for addressing new customers and market segments.
“I met the Prime Minister in May 2023 and told him that we would open the facility, and here we are with our first product coming off the lines,” Chuck Robbins, chairman and CEO of Cisco said at the inauguration. “We are so excited about India as a local market and export hub for Cisco. We are thrilled and excited to be a part of the GDP growth in this country, in the explosion of manufacturing and IT; leadership in telecom.”
He said the company has been in India for 29 years and has never been more excited about the opportunity here. “We are looking towards an incredible future in India,” he said.
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Daisy Chittilapilly, president, Cisco India & SAARC said the manufacturing facility in Chennai was a ‘pivotal step’ in the company’s investments in India. “This new facility strengthens our capabilities in the country to produce state-of-the-art technologies, contributing to our nation’s technological advancement and global competitiveness,” she said.Attending the inauguration ceremony, Jyotiraditya Scindia, minister of communications, urged Cisco to have a strong foundation in India.
He said the Union Government is planning to set up a telecom manufacturing zone to focus on manufacturing telecom equipment in the country.
“We are planning to make it a plug and play model and we are already in talks with stakeholder regarding this. We are looking for anchor tenants and have approached telecom equipment manufacturers with regard to the telecom manufacturing zone,” he said on the sidelines of the event.
Tamil Nadu Industries Minister TRB Rajaa said the state has become a critical hub for manufacturing and technology innovation. He emphasised that it was now important for the state to move from service to product development.
“This facility is in line with Tamil Nadu becoming a critical hub for advanced manufacturing and technological innovation,” Rajaa said. “Tamil Nadu continues to attract world-class investments, reinforcing our position in the global supply chain, especially in electronics manufacturing. We look forward to strengthening our collaboration with Cisco as we continue to drive technological growth and industrial leadership in the region.”
