Introduction
In a significant stride towards strengthening its manufacturing presence in India and aligning with the country's digital transformation goals, Hewlett Packard Enterprise (HPE) has announced the large-scale deployment of its made-in-India servers. This milestone initiative, unveiled in July 2023, forms part of HPE's strategic partnership with Indian manufacturer Voice, Video Data and Network (VVDN) Technologies. The company aims to manufacture high-volume servers worth approximately $1 billion within the initial five years of production, catering to the burgeoning demands of Indian enterprises and fortifying its global supply chain resilience.
Hewlett Packard Enterprise (HPE) | BS
Manufacturing Operations and Collaboration
HPE's made-in-India servers are being manufactured at VVDN's state-of-the-art facility in Manesar, Haryana, which has achieved full operational status in record time. Over the past eight months, both companies have prioritized automation, quality control, and operational efficiency in setting up the production and testing facilities. This expeditious establishment of VVDN's cutting-edge manufacturing plant underscores the commitment of both partners to delivering high-quality, locally produced servers to the Indian market. The servers, crafted to cater to a diverse range of applications and workloads, are poised to empower Indian businesses with enhanced IT infrastructure capabilities, enabling them to gain a competitive edge in the rapidly evolving digital landscape. HPE's servers, proudly bearing the 'Made in India' label, are designed to optimize performance, scalability, and efficiency, aligning seamlessly with the technological demands of modern enterprises.
Driving Innovation and Local Talent Development
HPE's 'Make in India' initiative extends beyond mere manufacturing; it encompasses a broader vision of fostering innovation, nurturing local talent, and contributing to India's economic growth. Som Satsangi, Senior Vice President and Managing Director of HPE India, expressed gratitude towards the government and the Ministry of Electronics & Information Technology (MeitY) for introducing the Production Linked Incentive (PLI) program, which has played a pivotal role in encouraging original equipment manufacturers (OEMs) like HPE to establish a manufacturing footprint in India.
"We extend our heartfelt appreciation to the government and the Ministry of Electronics & Information Technology (MeitY). Their vision in introducing the Production Linked Incentive (PLI) program has been instrumental in encouraging OEMs like us to establish a manufacturing footprint in India,"
Satsangi stated.
"HPE remains committed to driving innovation, fostering local talent, and contributing to India's economic growth."
The company's commitment to India's technological advancement is further exemplified by its extensive research and development (R&D) operations in the country. HPE's largest campus in the world, located at Mahadevapura in Bengaluru, houses more than 4,000 scientists, engineers, and research teams, serving as a hub for cutting-edge innovations and technological breakthroughs.
Enhancing Local Value and Supply Chain Resilience
A significant aspect of HPE's made-in-India servers is the incorporation of Printed Circuit Board Assembly (PCBA) through surface-mounted technology (SMT). This advanced manufacturing process, utilized by VVDN, enables the assembly of server motherboards with high-value components such as processors, memories, disks, and drives. HPE's PCBA capability in India significantly enhances the value of its servers beyond mere assembly and testing, further strengthening the company's ability to serve its government and public sector customers as a trusted and preferred supplier.
The $29 billion global technology major's decision to manufacture servers in India aligns with its broader strategy of supply chain diversification and resilience. By leveraging VVDN's backward integration capabilities, HPE is actively exploring opportunities to deepen localization and expand its portfolio of products manufactured in India, reinforcing its commitment to the country's manufacturing ecosystem.
HPE's Footprint and Future Plans in India
HPE's presence in India extends far beyond its manufacturing initiatives. The company boasts the largest workforce outside the United States, with over 25% of its total headcount based in India. Antonio Neri, President and CEO of HPE, expressed excitement about the government's efforts to modernize infrastructure and highlighted India's potential to become a hub for large-scale manufacturing.
"We are excited about the government's efforts to modernize infrastructure and believe that the country has the potential to become a hub for large-scale manufacturing, and our next phase aligns with the Indian government's policies,"
Neri stated. Furthermore, HPE's innovation prowess in India is evident through the substantial number of patents filed by its R&D team. Over the past three years, the company has received 1,873 US patents, with 366 patents filed by its Indian R&D team, underscoring the country's burgeoning technological capabilities.
Conclusion
Hewlett Packard Enterprise's 'Made in India' server manufacturing initiative represents a significant stride towards strengthening the country's manufacturing ecosystem, fostering innovation, and contributing to its digital transformation journey. By leveraging the Production Linked Incentive (PLI) program and collaborating with local partners like VVDN Technologies, HPE is not only catering to the growing demands of Indian enterprises but also reinforcing its global supply chain resilience.
With a focus on automation, quality control, and operational efficiency, HPE's made-in-India servers are poised to empower businesses with enhanced IT infrastructure capabilities, enabling them to gain a competitive edge in the digital age. Moreover, the company's commitment to nurturing local talent, driving innovation through robust R&D efforts, and exploring opportunities for deeper localization further solidifies its position as a trusted partner in India's technological advancement. As India continues to emerge as a hub for large-scale manufacturing and digital transformation, HPE's 'Make in India' initiative stands as a testament to the country's potential and the company's unwavering dedication to contributing to its growth and development.
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