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New Delhi: Hewlett Packard Enterprise (HPE) has partnered with original design equipment maker VVDN to begin manufacturing high-volume servers in India under the revised production linked incentive or PLI scheme.

The US-headquartered computing technology and solutions provider will make servers worth over $1 billion over next five years from VVDN’s plant in Manesar, Haryana, the company said on Tuesday.

“Today's announcement marks a significant milestone for HPE and reiterates our commitment to the Government of India’s ‘Make in India’ initiative for a self-reliant India," said Antonio Neri, president and chief executive officer, HPE.

“India is a strategic market for HPE’s business, talent, innovation – and now, manufacturing. Customers in India continue turn to HPE to help them digitally transform, and our 14,000 team members here play a key role in driving our edge-to-cloud strategy. We are proud to build on our strong presence by establishing a manufacturing operation in this important country," he added.

With a rapidly growing electronic manufacturing ecosystem in India, the facility will support the growing demand from customers in the country and strengthen and diversify HPE’s global supply chain.

Ashwini Vaishnaw, minister for railways, communications, electronics and information technology said, “We welcome HPE’s decision to start their manufacturing line in India, as it will enhance domestic production capacities." The recently announced PLI Scheme 2.0 aims to make India a global hub for electronics system design and manufacturing (ESDM). “We believe large-scale IT hardware manufacturing will help in broadening and deepening the manufacturing ecosystem," he added.

HPE said it has its largest workforce outside the United States in India, while its largest campus in the world at Mahadevapura in Bengaluru is home to many of HPE’s worldwide product development resources. More than 4,000 of HPE’s most distinguished scientists, engineers, and research teams are based out of HPE’s R&D hub at this campus.

“The decision to start manufacturing from India underscores HPE’s long-term commitment to India," said Som Satsangi, SVP and managing director at HPE India.

“India is expected to grow into a $1 trillion digital economy, and we believe that ‘Make in India’ will help accelerate this vision. With local manufacturing, HPE will be able to better serve the needs of our customers across industries and segments, from startups to SMBs to enterprise to government," he added.

This is the second time HPE is investing into India. In 2019, HPE announced an investment of $500 million over five years to grow its operations and team member base in India. Since then, HPE has created 2,000 net new jobs in India and invested in multiple new campuses and offices.