Cisco opens first manufacturing facility in India, to create over 1,200 jobs

In a bid to enhance its local production capabilities, American networking equipment company Cisco on Friday inaugurated its manufacturing facility in Chennai. This initiative is projected to generate over $1.3 billion annually, thereby improving both export levels and domestic production. The project is further anticipated to create 1,200 job opportunities in Tamil Nadu.

Cisco has collaborated with Flex to establish this facility, which will initially concentrate on the production of Cisco's Network Convergence System or NCS 540 Series routers. The company intends to manufacture high-quality routing and switching products at this site to address the increasing demand.

“This state-of-the-art site will produce a range of Cisco’s best-in-class routing and switching products to meet the rapidly growing technology needs of organisations in India and around the world,” the company said in a statement.

“This also marks a significant milestone in Cisco and Flex’s enduring 25-year partnership aimed at accelerating manufacturing worldwide with speed, resilience, and sustainable practices,” the company added.

The facility was officially inaugurated by Union Communications Minister Jyotiraditya Scindia, alongside Cisco CEO Chuck Robbins and Cisco India President Daisy Chittilapilly.

“This expansion not only deepens our presence in India but also strengthens our partnerships with customers, partners, and the government,” Cisco CEO Chuck Robbins said. He noted that Cisco aims to enhance supply chain reliability and foster innovation through the new facility.

Daisy Chittilapilly, President of Cisco India & SAARC, also underscored the facility’s role in boosting Cisco’s capabilities in the country. 

In the next phase of its investment Cisco intends to enhance its production capabilities by incorporating advanced products, including multi-layer printed circuit boards and industrial-grade components designed to withstand harsh environmental conditions. This initiative is anticipated to expand Cisco's technical manufacturing capabilities, enabling the company to cater to a wider range of customers and market segments.

Notably, Cisco, like many other companies, is facing challenges due to declining demand amid a global economic downturn, which has led the US tech firm to implement cost management strategies, including layoffs. The company reportedly terminated over 5,000 employees in recent weeks, marking its second round of layoffs this year.