Dell's Indian PCs to come cheap

Personal computer maker Dell is likely to cut the prices of its made-in-India products after its Chennai plant begins operations.

"We are currently importing the products from Malaysia. Having a manufacturing facility in the country will enable us to reduce the import duties and freight costs. We will pass on these price advantages to customers," Romi Malhotra, managing director, Dell International Services, said on Monday.

The company will roll out its first computer from the $30-million Chennai facility in two to three months, he said, adding that the facility would have an annual capacity of 4 lakh units, which could be expanded, depending on the growth of business in the country.

Dell has decided to focus on the banking, financial services and insurance (BFSI) segments initially, and later the small and medium businesses (SMBs) sector.

Globally, Dell is taking the retail route, with its personal computers (PCs) being sold in Wal-Mart stores across the US.

"We have received a fantastic response in the US, and this is one channel that we need to look at in India, going forward. However, it all depends on how the model is received in other geographies," he said.