Exatron Servers Manufacturing will set up a manufacturing and assembly plant at Tirupati in Andhra Pradesh.
The company will invest Rs 360 crore or $50 million in the next five years to develop the server manufacturing facility at the Industrial Park Electronic Manufacturing Cluster in Andhra Pradesh.
Exatron Servers Manufacturing will start the construction work next month. It aims to create 900 jobs at the plant over the next five years.
“We expect that the products from the unit will be ready for commercial shipments in the next nine months,” a company statement said.
The facility will have a built-up area of two lakh sq ft. It will produce high-end computing servers and storage products.
“It will help meet the growing needs of the data centre and cloud market in the country. There is a surge in demand for servers in the domestic market,” Suryanarayanan B, chief executive officer of Exatron, said.
HPE, Dell EMC, Lenovo, Cisco, Super Micro, among others, are the top server suppliers in the Indian IT market during the third quarter of 2018, according to research firm IDC.
The server market in India is forecast to grow by 29 percent in terms of value and 15 percent in terms of volume the next 4 years, according to IDC APeJ Server market forecast. This explosive growth is due to large-scale digital transformation initiatives at enterprise and government levels viz Smart cities, e-Governance, Digitization of citizen services (e-Pragati in AP) and more.
Exatron is using Intel server technology in their products and their plans to scale manufacturing servers highlights the potential of the server market in India,” said Prakash Mallya, managing director, Sales & Marketing Group, Intel India.
(L-R) Tom Sebastian, director of Supply Chain Management and Customer Support; Kalyan Muppaneni, director of Exatron and founder and CEO of Pi Data Centers, B Suryanarayanan, CEO of Exatron and Venkata Rama Krishna, director of Factory Operations, Exatron.