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October 19, 2005
US networking giant Cisco to invest $1.1 billion in India
Data networking giant Cisco Systems Inc. of US will spend $1.1 billion in India over the next three years in the company's largest investment outside the United States, its chief executive said Wednesday according to a report by Associated Press.
Cisco, based in San Jose, California, started its India operations in 1995 and plans to triple its work force from the current 1,400 by 2008. The company has its global research and development center in the southern city of Bangalore and offices in seven other Indian cities.
$750 million of the $1.1 billion will be spent on research and development activities, including training, development and staffing. The rest would be spent on providing leasing and other financial solutions to the company's customers, investing in Indian startup companies and customer support operations.
The company will help the Indian government establish "Common Services Centers" in 100 villages. The centers' aim is to provide residents of rural areas with online access to government services.
Cisco will also invest $10 million in a telecom network project in the southern city of Madras run by Bharat Sanchar Nigam Ltd., a state-owned corporation, said Communications and Information Technology Minister Dayanidhi Maran.
Cisco's revenue has grown by 50 percent in India in the past two years. The company sees 30% annual growth in the next three years. According to a statement by Cisco's CEO John Chambers, India may become it's largest market in Asia in the near future.
Posted by admin at October 19, 2005 03:24 PM