BackEMC Corp to triple India investment to $1.5 bn
EMC Corp to triple India investment to $1.5 bn
PremiumExpansion plan: EMC Corp. chief financial officer David Goulden. Hemant Mishra / Mint
Bangalore: Data storage firm EMC Corp. will triple its investment in India to $1.5 billion (around Rs7,300 crore) in five years to expand its research, back-office and sales operations. The announcement marks the return of investments by top technology companies to India after a year of drought.
India is among the top three fastest growing regions for the firm.
“There is uptick in technology spending. The second half (of 2009) will be stronger than the first half," said David Goulden, chief financial officer of EMC, after opening the firm’s new 3,500-seat research and development centre in Bangalore on Wednesday.
The global economic meltdown that began last year had dried up investments by technology firms in India.
EMC has invested $500 million in India so far, employing 4,000 people, including 2,000 from tier I Indian information technology service vendors, Goulden said.
Goulden said EMC and Cisco Systems Inc. were working on building data centres and virtualization in India. Virtualization refers to sharing of storage and server resources.
“It is not costs. Growth is happening outside the US. It is logical that you expand where the growth markets are," said Sarv Saravanan, managing director of EMC’s India unit.
EMC, which competes with International Business Machines Corp. and Hewlett-Packard Co. in storage products, had a 25% share of the $229.69 million Indian market in 2008, according to technology researcher Gartner Inc.
“There is pent-up demand for storage products. The likes of banks, manufacturing companies, telecom and small businesses are all investing," said Aman Munglani, principal research analyst at Gartner.
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