Dell announced it has opened a new plant in India, near the southern Indian city of Chennai:
"The Chennai operation reaffirms the strategic importance of India to Dell, providing significant impetus to our growth plans and prospects here," Rajan Anandan, General Manager at Dell's Indian subsidiary, said in the statement.
In the year ended March 2007, 6.3 million computers were sold in India, according to MAIT, a hardware trade body.
Dell has done well selling servers and computers to large Indian companies in recent years, but the Round Rock, Texas-based company has had difficulty penetrating the mass market for desktop computers and laptops.
Dell computers are relatively expensive in India partly because the company ships fully assembled systems into the country, paying more in duties than its rivals who manufacture locally.
That may change with the new plant, which will initially make 400,000 desktop computers annually.