The US-based $26 billion networking major, Cisco Systems, said that it would increase its investment commitment in India from $150 million to $200 million.
January 18, 2001
The US-based $26 billion networking major, Cisco Systems, said that it would increase its investment commitment in India from $150 million to $200 million.
It also said it would invest in Indian information technology start up companies through the venture capital mode.
Investments by the company would go towards enhancing Cisco's research and development activities in India. “We are increasing our financial commitment to India in research and development sector to $200 million, an increase of $50 million over the amount announced in August last year,” John T Chambers, president and CEO of Cisco Systems said.
He said the funds, to be invested over the next two years, would be pumped in for R&D activities especially in the areas of next generation networking technologies and solutions.
The company’s investment would go into the Cisco Global Development Centre in Bangalore, which currently employs over 400 engineers. In addition, the investment would promote five development centres which Cisco had set up with Indian IT companies.
Referring to the VC funding of Indian companies he said, “We will be looking at venture capital funding of Indian start-ups, particularly those which operate in the Internet software segment.” He said that the company's team in India would facilitate identification and selection of potential start-ups for investments in the near future.
Chambers said that Cisco would need to, over the next three years, increase overall engineering strength in the country by 300 per cent to meet growth projections.
According to Chambers, the Indian operations which currently contribute less than one per cent to the company's global business is expected to account for up to 10 per cent in five to seven years.
Cisco Systems India currently employs about 500 professionals at the Bangalore development centre and in its sales offices in New Delhi, Mumbai, Bangalore, Chennai and Calcutta.
Acknowledging India's strength in the software market, Chambers said: "We are expanding our presence in India to take advantage of the research and development talent and to demonstrate our commitment to the government and the country. Our global development centre is the critical component in our success."
Chambers had earlier announced an investment of $10 million for expanding the Internet education programme in the country, including setting up of 34 regional networking academies in all the states of India.
The global networking giant also announced the establishment of a centre of IT and networking excellence in the country. Of the total $10 million earmarked for India, $8.6 million would be invested for the networking academy project. The balance $1.4 million would be invested in establishing the centre for excellence.
A laboratory would also be set up with the support of the IT ministry to promote advanced networking education in the country.
