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India - production hub for Compaq? - Views on News from Equitymaster
 
 
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  • Jun 14, 1999

    India - production hub for Compaq?

    Compaq has decided to make India a production hub for its products. Till recently, Compaq was importing fully assembled units for its India operations.

    The move, seen to be as a sign of the importance of India in Compaq's global plans, is also viewed as part of the strategy following the global merger of Compaq and Digital Equipment. The company has submitted a proposal to this effect to the Foreign Investment Promotion Board (FIPB) for approval.

    Compaq currently has a wholly-owned subsidiary in India. The entity primarily works as a unit for sourcing electronic components from manufacturers in India. This is further passed on to Compaq's assembly and manufacturing units in various parts of the world. The Indian operations are thus limited to importing assembled products and marketing these through its 100% subsidiary or through some of the JVs it has floated. The current level of investment stands at Rs 200 m in India.

     

     

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