Dell launches made in India laptops

NR Sethuraman

Chennai

April 24, 2008

Dell announced the launch of Dell 500, its entry-level laptops from its
Chennai facility. These notebooks are preloaded with Windows XP and Ubuntu
Linux, and are available at Rs 24,500. It is also the first Dell notebook
manufactured out of India.

Commemorating the launch, Rajan Anandan, VP and GM, Dell India said, “This
is an effort to take technology close to the people. This notebook would be
affordable, easy-to-use and the only entry-level product with an onsite
warranty.”

The notebook will primarily target the SMB and educational segments, and Dell
proposes to go to market through both direct and channel means. It may be noted
that recently, Dell took the channel route by tying up with Tata-promoted 'Croma'
store in Mumbai as its first retail partner.

On using the direct model all these years and suddenly taking the channel
route, Anandan said, “Our foray into retail was driven by the need to meet the
expectations of Indian customers. We have to provide what the customers want. In
India, they want to have the touch-and-feel of the products, which drove our
entry into retail.”

However, Dell continued to remain tight-lipped on its channel strategies. “We
will share the channel strategy in the very near future. At this point in time,
we are not ready to share any details about channel strategy,” Anandan said.

The facility located in Sriperumbudur near Chennai will now start producing
Dell desktops, laptops including premium XPS models for the Indian consumption.
Currently, this facility is capable of producing four lakh units a year and will
be expanded to produce about 10 lakh units over the next 12 months.

Earlier Dell imported laptops and a bulk of the computer components from its
suppliers in China and Malaysia. Now the components' import would continue but
the assembly would be done in India.

Anandan said that the duty structure and poor infrastructure were the factors
deterring the suppliers from beginning their operations in India. “If there is
zero duty, the suppliers would start operating here, and then there would be
drastic price drop in the PCs and notebooks,” he averred.