Cisco to invest $1 bn over 3 yrs

Cisco Systems Inc, the world's largest Internet equipment vendor, today announced an investment of $1.1 billion in India over three years, making it the company's largest investment outside the US.

Announcing the company's investment plans for India, Cisco president and CEO, John Chambers, said India had rapidly rises to become a force in the global economy, and was 'was likely to become the largest market for the company in Asia.

Cisco will also tripple its head count in India over three years from 1,400 at present, and will consider setting up a manufacturing plant in the country, Chambers said.

"We may start with very basic equipment manufacturing to supply customers in India and then expand. Manufacturing plans, if any, will be announced next year," he said. The company, which had registered over 50 per cent growth in annual revenues during the last two years, expects a 30 per cent growth in revenues over the next three years.

Outlining the investment plans, Chambers said $750 million would be allocated to research and development, including training, development and staffing, while $150 million would be dedicated to Cisco Capital Systems (a division of Cisco Systems) to provide leasing and other financial solutions to its customers and partners.

"About $100 million in venture capital will be earmarked to invest in Indian start-up companies and a similar amount will be invested in customer support operations, a significant portion of which will be allocated for technical services, spare parts depots and channel development," he added.

In a joint announcement with the ministry of communication and information technology, the company said it would collaborate with the government to support the national e-governance plan.

"Cisco will support Bharat Sanchar Nigam's Ltd telecom network evolution by establishing Asia's first IP Next Generation Network (NGN) lab for the PSU in Chennai. To support these two initiaives, Cisco will invest a combined $10 million," minister for communication and IT, Dayanidhi Maran, told reporters.

Under the collaboration with the Indian government, Cisco will establish a SWAN advanced technology enablement program, where the company will provide state-of-the-art technology, for establishing 'centres of excellence', in all state government head quarters.

Maran also said Cisco will partner the Indian government to establish 'common service centres' in villages in India for providing citizens online access to government services in rural areas.

"Cisco will support the initiative by providing network equipment necessary to build network infrastructure for up to 100 villages,' Chambers said. 'Our collaboration with the Indian government strengthens the company's long standing commitment to India," he added.

The company, which started its operations in India in 1995, has a research and development centre in Bangalore and offices in New Delhi, Mumbai and four other Indian cities.