Dell launches direct sales in India

NEW DELHI: Michael Dell, chairman and chief executive officer of Dell Computer Corporation, the world’s second largest PC manufacturer, formally launched Dell's direct sales strategy in India on Thursday. "Certainly, an objective for us would be to see India as one of the top countries in Dell's overall businesses," the 35-year-old chairman said. "I think you'll see Dell aggressively go after this (India) market."

Dell Computer Corp recently set up Dell Computer India Pvt Ltd, its fully-owned subsidiary. Dell's products were earlier sold through local partners in India, notably Tata Infotech Ltd . The company expects its Indian sales to maintain the high triple digit growth rates shown in the last few years, a senior company official said on Thursday.

"IDC projects the Indian market to grow at excess of 40 per cent this year and at 50 per cent next year," Chip Saunders, Dell's president for the Asia-Pacific, said refering to a forecast by market research group International Data Corporation. "And we believe that we will grow in multiples of those numbers... at triple digit levels," he told a news conference in the Indian capital.

Officials said the company's sales in India had grown by more than 200 per cent in the last few years. The Asia-Pacific region, which accounted for about eight percent of Dell's total revenues last year, is likely to be one of the fastest growing markets for the company. The company's revenues have shown growth rates of about 48 percent in the Asia-Pacific.

"I should point out that our business in the Asia-Pacific and Japan now is larger than all what was Dell was in seven years," Dell said. The U.S. firm, however, has no immediate plans to set up a manufacturing facility in India and will serve its orders from its plant at Penang in Malaysia.

"We do not have a plan for a full-fledged manufacturing facility today in India. As our business grows, we will evaluate exactly the best way to meet the needs of the market," Dell said. The company will initially focus on its global customers, large corporations and government agencies, all of whom will be billed in Indian rupees.

(C) Reuters Limited 2000.