Dell Technologies’s road map for India
Mumbai: “India is our third-largest market in the world. And incredibly important as a base of operations, as a source of talent, R&D labs. All that continues. The Indian economy is doing well and the opportunities in IT, business technology and transformation are tremendous,” Dell Technologies chief executive Michael Dell said in an interview on the sidelines of Dell World 2016 in Austin, Texas.
According to International Data Corporation, in the overall personal computer (PC) shipments for the April-June quarter, HP Inc. reclaimed its top spot with a 28.4% market share and Dell captured the second spot with 22.2%, “backed by focused efforts on growing branded consumer desktop category”.
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In the India x86 (Intel-based servers) market, HP maintained its lead position in the October-December quarter of 2015 with 36% market share in terms of unit shipments, followed by Dell with a market share of 24% and Lenovo with 12%. EMC led in India’s external storage industry with a 28.4% market share in the January quarter.
In an interview on 13 October, Alok Ohrie, president and managing director (India commercial business) at Dell EMC, insisted that the combined company is now “uniquely positioned” to provide customers with solutions that will secure their digital future with “a single window of engagement”.
Other than PCs, server and data centre businesses, Dell India is partnering with a number of companies in areas like digitization and Digital India, which is all about getting people connected both from a device and from a network perspective, according to Ohrie.
India is also the only country, outside of the US, where Dell has networking, storage and server research and development operations. Dell Technologies’ employee count in India is around 27,000 people.
Dell does not break-up revenue by countries, but according to estimates by Dataquest, a Cyber Media (India) Ltd publication, Dell India’s revenue grew from Rs13,984 crore in FY15 to Rs17,480 crore in FY16, a rise of 25% ().
Dataquest estimated EMC India revenue in FY15 to be Rs2,452 crore, a 15% rise over the previous fiscal year. If similar growth were to be assumed, the revenue for FY16 would come to about Rs2,819 crore, which would make the combined Dell-EMC India revenue a little over Rs20,000 crore.
According to Tom Sweet, chief financial officer of Dell Technologies, the combined revenue of the two companies in India is “closer to $2.5 billion”.