Tech major HP has said it has started manufacturing operations at contract electronics manufacturer Flex Ltd’s facility at Sriperumbudur near Chennai, Tamil Nadu. HP, which already has its own manufacturing plant in Pantnagar district of Uttarakhand since 2006, said the latest expansion is a part of the company’s ‘long-term commitment to the Indian market’. HP, however, did not disclose details about investment and capacity under the contract manufacturing arrangement with Flex. ‘The plant will manufacture desktops and workstations that enable HP to meet current and future customer needs while driving greater operational efficiency. Its geographical location provides it access to a nearby port and HP’s spare parts facility in Bengaluru,’ a company statement said. This, in turn, enables the company to procure materials from other parts of India and from Asia more quickly and efficiently, it added. ‘With the inauguration of this new facility, we aim to strengthen our commitment to India and support the growth of the local manufacturing ecosystem,’ HP India Market Managing Director Ketan Patel said.

HP was ranked number one with 28.2 per cent share of the traditional PC market (that includes desktops, notebooks, and workstations) in India in the March 2020 quarter, according to research firm IDC. During the quarter, the total shipment declined by 16.7 per cent year-over-year with a total of 1.8 million units.

‘We are delighted to partner with HP to manufacture desktops and workstations in India and are committed to helping HP meet the current and future needs of its customers. We look forward to bringing our advanced manufacturing capabilities along with our supply chain expertise to this engagement,’ Flex Senior Vice President, India Operations Richard Hopkins said.