Hewlett Packard Enterprise (HPE) on Wednesday announced its plans to invest USD 500 million in India over the next five years to expand its operations, strengthen manufacturing capabilities and hire more people in the country.
The company plans to increase its workforce in India by 20 per cent over the next three to five years. It will hire new engineering talent with expertise in areas of critical importance to customers such as artificial intelligence (AI) and networking, HPE said in a statement.
It will also begin construction of a high-tech extension to its Mahadevapura campus in Bengaluru that will be able to house more than 10,000 employees, as well as state-of-the-art R&D facilities, it added.
When complete, the 1.3-million sq ft campus will support a broad range of functions including R&D, engineering services, finance and sales.
"This strategic investment (of USD 500 million) underscores HPE's long-term commitment to India and will enable the company to grow its operations, manufacturing and employee base in the country, increase its R&D and services exports, as well as invest in technology initiatives to drive positive change for local Indian communities," the statement said.
HPE said it also plans to commence manufacturing in India.
The company is scheduled to start manufacturing it subsidiary Aruba's portfolio of mobility and Internet of Things (IoT) solutions in India before the end of this year.
"The manufacturing capability in India will allow Aruba to rapidly innovate networking solutions that will deliver benefits in support of the Digital India agenda and to customers across the country," it said.
Antonio Neri, President and CEO of HPE and a member of the US-India CEO Forum, said India is one of the largest and fastest-growing economies in the world, and the investments will further develop the country as a critical market for HPE's global business.
"The Modi 2.0 administration's vision of a USD 5 trillion economy is impressive and fitting for a country with this level of energy and opportunity...(the investment will) benefit our customers, partners, employees and the citizens of India," he said.
Electronics and IT Minister Ravi Shankar Prasad said it is a matter of great assurance that a global giant like HPE is making big investments in India both in manufacturing as well as R&D.
"This shows the rising confidence of global investors in India's rapidly growing electronics manufacturing sector and the success of Digital India," he said.