Hewlett Packard Enterprise (HPE) on Tuesday has partnered with local manufacturer VVDN Technologies and said it will begin manufacturing some of its high-volume servers in India and manufacture around $1 billion worth of high-volume servers in the first five years of production from the country.

The servers will be manufactured from VVDN Technologies’ plant in Manesar (Haryana), the company said adding that this manufacturing operation will support the growing demand from customers in India and further strengthen and diversify HPE’s global supply chain.

“We welcome HPE’s decision to start their manufacturing line in India, as it will enhance domestic production capacities. 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 that large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem,” Ashwini Vaishnaw, Minister for Railways, Communications, Electronics and Information Technology, said.

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. 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, the company said.

‘Strategic market’

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

HPE is an established, trusted partner to India in its digital transformation journey and is working across various central and State government departments sharing expertise and providing solutions for population-scale initiatives, he said.

“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 start-ups to SMBs to enterprise to government,” Som Satsangi, Senior Vice President, and Managing Director at HPE India, said.

Investments

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. Since then, HPE has created 2,000 net new jobs in India and invested in multiple new campuses and offices.

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