Hewlett Packard teams up with VVDN to manufacture high-end servers in India

Hewlett Packard Enterprise (HPE) partnered with Indian tech manufacturer VVDN Technologies to make high-volume servers in India, the American IT giants said on Tuesday.

HPE and VVDN signed a memorandum of understanding, and the Texas-based company expects to manufacture high-end servers worth USD 1 billion within the first five years of production in India.

The new partnership will allow HPE to manufacture its products from VVDN Technology’s plant in Manesar, Haryana.

This decision came after the Indian Prime Minister Narendra Modi’s high-profile visit to the US.

Som Satsangi, Senior Vice President and Managing Director at HPE India and Puneet Agarwal, CEO at VVDN Technologies met with Ashwini Vaishnaw, the Union Minister for Communications, Electronics and Information Technology on Tuesday to discuss the details of the partnership.

Vaishnaw announced the news on Twitter, announcing that he ‘welcomes’ HP’s decision to make servers in the country.

“The recently announced Production Linked Incentive (PLI) Scheme 2.0 aims to make India a global hub for Electronics System Design and Manufacturing (ESDM). We believe large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem,” the IT Minister told ANI.

“These high-end very complex machines getting manufactured in India show how mature the electronics manufacturing industry is now becoming.”

Hewlett Packard committed to ‘Make in India’ initiative: CEO

Antonio Neri, President and CEO of HPE, said that the company’s decision reinforced its commitment to the ‘Make in India’ initiative of PM Modi.

“Today’s announcement marks a significant milestone for HPE and reiterates our commitment to the Government of India’s ‘Make in India’ initiative for a self-reliant India,” Neri said.

“India is a strategic market for HPE’s business, talent, innovation – and now, manufacturing. Customers in India continue turn to HPE to help them digitally transform, and our 14,000 team members here play a key role in driving our edge-to-cloud strategy. We are proud to build on our strong presence by establishing a manufacturing operation in this important country.”

The sentiment was echoed by Som Satsangi, who said, “The decision to start manufacturing from India underscores HPE’s long-term commitment to India.

“India is expected to grow into a USD 1 trillion digital economy, and we believe that ‘Make in India’ will help accelerate this vision. With local manufacturing, HPE will be able to better serve the needs of our customers across industries and segments, from startups to SMBs to enterprise to government.”