This is the first time that the global computer major – which is also the top seller in the country with a market share of 31.5% – has expanded its Made-in-India profile as it invests along with manufacturing partner Flex at the latter’s Chennai facility. “The enabling environment for electronics production in India is making us look at strengthening our commitment here. We are investing and widening our locally made product portfolio and will not shy from making further investments as we go deeper with local manufacturing,” Ketan Patel, MD of HP in India, told TOI.
HP’s business in India has been growing rapidly since the outbreak of the pandemic – in line with the broader industry trend – and the company’s revenues in 2021 are likely to be around $3 billion. Factors such as work- and educate-from-home saw a huge surge in demand for digital products like laptops and desktops. This helped companies such as HP and its rivals like Dell, Lenovo and Apple, even though the global shortage of semiconductors acted as a constraint in terms of consumer deliveries.
According to analyst firm IDC, HP’s India sales grew 59% in 2021, with strong numbers both in the consumer and commercial segments. The company has also gained immensely in the gaming and lifestyle segments with its range of products, apart from getting a strong traction in the small and medium businesses category.
HP’s local push comes at a time when the government is aggressively pitching to promote domestic manufacturing of electronics, and has announced schemes such as a PLI for IT hardware (laptops, tablets, all-in-one personal computers and servers), and a $10-billion scheme for localising semiconductor production.
Patel said that HP’s headquarters has been encouraged by the “positive moves of the government”, apart from the growing demand in the Indian market. “This is the first time that HP is manufacturing such a wide range of laptops in India, with products such as HP EliteBooks, HP ProBooks, and HP G8 series notebooks.”