www.skpcrossborder.com December 2004
Your eye to India-centric and International updates
India Inc - Investment briefs

Microsoft's Hyderabad campus to house 3200 pros

Microsoft Corporation recently unveiled the Microsoft Campus in Hyderabad. Expansion plans include a rise in the headcount from the present 800 to over 3,200 by the end of 2006 in keeping with the Campus size as well as Hyderabad’s skilled resource pool.

While the Hyderabad development Centre helps the Company in core product development, thereby contributing to the world's IT industry as a whole, Microsoft has also contributed to the growth of rural India. Localizing in vernacular languages has also helped in bringing IT to users in rural areas of India. Ballmer in fact confirmed that the project was a continuation and an extension of the Bill & Melinda Gates Foundation's investments of $400 mln in India over three years.

Spread over 28 acres, the campus is the largest outside the US, housing employees across its three units-the India Development Center (IDC), the Global Delivery Center India (GDCI) and the sales & marketing organization. While phase I of the facility has the capacity to host 1,600 people, phase II would add another 1,600. The foundation stone for the phase II center is also being laid as part of the inauguration event.

Microsoft is not the only company investing in Hyderabad. Commenting on Microsoft’s contribution to rural India, Chief Minister Y S Rajashekara Reddy also announced the setting up of a fabrication unit in Hyderabad, with investments of $2.6 billion on the part of a South Korean company.

$ 3.1 bln fabrication unit being setup in Hyderabad

P June Min, Chairman, Intellect Inc. announced the setting up of a fabrication unit in Hyderabad at the CII's two-day e-hardware summit. Intellect will sign a MoU with the government of Andhra Pradesh shortly and the foundation will be laid in February 2005. Actual chip making is likely to commence by July 2006.

The unit to be named Indian Semiconductor Manufacturing Company (ISMC), would come up in two phases, Phase I involving an investment of $600 mln of which $160 mln would be in the form of equity-$80 mln from Indian and $80 mln from foreign players. Phase II would be set up with an investment of $2.5 bln after two years of setting up of the first phase.

The proposed fab will manufacture chips, wafers that would cater to the consumer electronic market. The semiconductor chip market for consumer electronics in India is around $900 mln and is expected to grow to $1.2 bln by the time ISMC is likely to start production in 2006. The Company plants to address nearly 70-85 per cent of the market share.

Seoul based Intellect is a promoter of such fabs and has already set up eight similar units across the world with two facilities in China alone.

Top

Quantum, Wipro partner for Engg. & design

Quantum Corp. and Wipro Technologies have ventured into an alliance whereby, Wipro will provide engineering and software design services to augment Quantum's internal storage systems resources.

The new agreement is an extension of an ongoing relationship between the global data storage company-Quantum and the global IT services division of Wipro Limited, whereby Wipro has been providing high-end storage solutions for the past four years using Quantum products. Now Wipro’s expertise in developing feature enhancements will enable Quantum to gain efficiencies by adding continuous customer-driven innovation to its products.

Recently Quantum launched its eight-city "Best of Breeds" road show in India, along with other vendors, including Veritas, Hitachi Data Systems and Ingram Micro, to showcase its range of products. Quantum has also opened a second service hub in Mumbai to meet the growing product demands, and plans to continue increasing its local sales and service employees.

Print this ArticleTop
In the News
FII income from Indian investments not taxable
Big mergers & acquisitions to gain approval of Competition Commission

Interesting Reads
India’s Asset Management Companies getting foreign giants interested
Government keen on lending foreign investors a helping hand
Interesting Read

Quick Links
Private equity investors bet big on local firms
India among top four FDI destinations in Asia

India Inc
- Investment briefs
RFID player - OAT Systems now in Bangalore
Mimosa launches operations in Pune
SKF automobile R&D center set up in Bangalore
Nortel to set up two more offices
UK-based C&W to invest $5 m to strengthen presence in India
British bank hikes India outsourcing to 2,500 jobs
Microsoft's Hyderabad campus to house 3200 pros
Rs 14,000 cr Fab unit in Hyderabad
Quantum, Wipro partner for Engg. & design

Hope you enjoyed this edition of ‘eye to I’
Please feel free to mail us -
-
any suggestions / comments that would help us enhance this e-supplement
-
requests for further information or advice
-
a request to meet
© 2004 SKP Crossborder Consulting Pvt Ltd Email to a Friend | Unsubscribe | Feedback | Disclaimer