Hewlett Packard Enterprise starts rolling out made-in-India servers; plans to enhance local sourcing

Hewlett Packard Enterprise has started deploying its 'Made-in-India' servers at a large scale in the country in less than a year after it announced plans for making them locally, the company said on Tuesday.

HPE unveiled its Make-in-India plan in July 2023 with Indian manufacturer VVDN Technologies and is planning to manufacture approximately USD 1 billion worth of high-volume servers in the first five years of production.

The company announced that "its 'Made in India' servers are now being deployed at large scale to serve the growing demands of Indian customers ahead of schedule".

"HPE's plan to manufacture servers in India aligns with its broader objective of supply chain diversification and resiliency. The company is actively exploring opportunities to deepen localisation by leveraging VVDN's backward integration capability and expanding its portfolio of products manufactured from India," the statement said.

HPE said printed circuit board (motherboard) assembly through surface-mounted technology is one of the most technically complex and critical aspects of server manufacturing and the PCBA (printed circuit board assembly) capability in India creates significant local value enhancement for the servers beyond just assembly and testing.

"We extend our heartfelt appreciation to the government and the Ministry of Electronics and Information Technology (MeitY). Their vision in introducing the Production Linked Incentive (PLI) programme has been instrumental in encouraging OEMs like us to establish a manufacturing footprint in India," HPE India SVP and managing director Som Satsangi said.