Cisco, the global telecom and networking equipment manufacturer, has outlined plans to achieve $1 billion in domestic production and exports from its upcoming manufacturing unit in Tamil Nadu, India. Chuck Robbins, Cisco’s Chairperson and Global CEO, announced that the new unit would initially focus on manufacturing network switches and high-end routers, aiming to export these products to Europe and other regions. Robbins highlighted the shift in customer technology infrastructure to adapt to a fully digital world, emphasizing the rapid pace of transformation in India. The manufacturing unit is expected to diversify supply chains and enhance resilience, aligning with the global trend post-Covid.
The decision to establish the manufacturing unit in Tamil Nadu reflects Cisco’s commitment to India’s growth and export potential. The company aims to leverage the manufacturing facility to tap into India’s vibrant market and contribute to the country’s evolution into a leading digital economy. The new unit, anticipated to commence operations in the next 12 months, is expected to generate approximately 1,200 jobs in the manufacturing ecosystem.
Robbins emphasized that the pre-Covid focus on supply chain efficiency has evolved to prioritize a combination of efficiency and resilience. The manufacturing unit will support testing, development, logistics, and expand Cisco’s in-house repair operations. While the location of the unit and its participation in India’s production-linked incentive (PLI) scheme for telecom equipment manufacturing were not disclosed, Cisco’s move signifies its strategic investment in the Indian market.
The manufacturing unit’s establishment in India aligns with the government’s “Make in India” initiative, encouraging global companies to manufacture their products locally and contribute to the country’s economic growth. Cisco’s foray into domestic production and exports is expected to boost India’s standing in the global telecom and networking equipment manufacturing landscape.
Daisy Chittilapilly, President of Cisco India & SAARC region, noted that the investment represents a significant milestone for Cisco and will facilitate the delivery of state-of-the-art technologies to a broader audience. The move underscores Cisco’s efforts to support India’s transition into a leading digital economy.
Beyond traditional networking and telecom equipment, Cisco aims to expand its presence in the software domain, targeting 50% of its overall revenue from software by the end of fiscal year 2025. The company is actively collaborating with Indian telecom giants such as Bharti Airtel and Reliance Jio Infocomm on public 5G initiatives. Additionally, Cisco is engaged with customers in the private 5G space, particularly in the manufacturing sector, where private 5G networks are gaining traction for low-latency applications.
In conclusion, Cisco’s strategic investment in a manufacturing unit in Tamil Nadu reflects its commitment to India’s growth story, emphasizing the country’s role as a key player in the global digital economy. The move aligns with broader industry trends, focusing on resilient and diversified supply chains, and underscores Cisco’s dedication to fostering innovation, creating jobs, and contributing to India’s digital transformation.
