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In a strategic move aimed at solidifying its position in the India as manufacturing arena, global market leader Hewlett-Packard (HP) has embarked on an ambitious journey. With an impressive 30 percent market share in the Indian PC space for 2022, as reported by IDC, HP has officially submitted an application to participate in the Production Linked Incentive Scheme 2.0 (PLI 2.0). This pivotal step marks the beginning of HP’s plan to extend its manufacturing operations to encompass consumer laptops within the country.

HP Investment Ambitions in India

According to reliable sources at the Ministry of Electronics and IT (MeitY). Also, HP is gearing up to make a substantial investment in the range of Rs 250–300 crore to bolster its manufacturing capabilities in India, aligning with the PLI 2.0 guidelines.

HP’s history of manufacturing in India is noteworthy. The company has been actively involved in producing a variety of commercial computing devices, including laptops, desktops, all-in-one (AIO) PCs, and workstations. In fact, HP was among the pioneers to initiate PC manufacturing in India as early as 2006. However, an intriguing development occurred in 2020 when HP opted to consolidate its manufacturing operations. Moreover, relocating them to the facilities of Chennai-based contract manufacturer Flex.

The Production-Linked Incentive (PLI) scheme for IT hardware made its initial debut in May 2021. The primary objective behind this scheme was to position India as a global manufacturing hub for laptops and tablets while also enhancing the country’s participation in the global electronics value chain. With an impressive budget allocation of Rs 7,350 crore, the scheme managed to attract the attention of both international and domestic IT hardware manufacturers. However, as the years rolled on, a noticeable gap emerged between the envisioned targets and the actual investments.

The Genesis of PLI 2.0

Recognizing the need for a revitalized approach, the Indian government took the initiative to launch PLI 2.0 in collaboration with the industry. This enhanced version of the scheme comes with a significantly augmented budgetary allocation, boasting a staggering Rs 17,000 crore. The aim is clear: to reignite enthusiasm among manufacturers and encourage further investments in the Indian IT hardware sector.

Shifting focus towards HP’s latest manufacturing endeavor, the company is poised to transition from catering solely to the commercial segment to entering the consumer market. This strategic shift is not only significant for HP but also holds profound implications for India’s burgeoning electronics manufacturing landscape.

HP’s manufacturing journey in India has been marked by success and innovation. The company’s repertoire of products produced on Indian soil has included a wide range of commercial computing devices, such as laptops, desktops, all-in-one (AIO) PCs, and workstations. Remarkably, HP was a trailblazer, initiating PC manufacturing operations in India as far back as 2006.

The year 2020 witnessed an interesting development in HP’s Indian manufacturing saga. The company made the strategic decision to consolidate its manufacturing operations. As part of this consolidation, HP shifted its production base to the facilities of Flex, a prominent contract manufacturer located in Chennai.

The PLI for IT Hardware: A Game-Changer

The Production Linked Incentive (PLI) scheme for IT hardware, introduced in May 2021, represented a pivotal moment in India’s quest to establish itself as a global manufacturing powerhouse. The scheme was strategically designed to focus on the production of laptops and tablets, with the overarching goal of enhancing India’s role in the global electronics value chain.

Despite the initial enthusiasm generated by the PLI for IT hardware, a noticeable gap emerged between the envisioned targets and the actual investments. In response, the Indian government decided to embark on a revitalized journey, unveiling PLI 2.0 in collaboration with the industry.

HP manufacturing facility in India showcasing cutting edge technology and production

PLI 2.0 emerged on the scene with a resounding financial roar. The scheme boasts an impressive budgetary allocation of Rs 17,000 crore, a substantial increase compared to its predecessor. This monumental investment is a testament to the Indian government’s commitment to fostering the growth of the IT hardware sector.

Now, circling back to HP’s role in this evolving narrative, the company’s application for participation in PLI 2.0 signifies a proactive stance towards embracing the opportunities presented by this enhanced scheme. By aligning its vision with PLI 2.0, HP aims to take its Indian manufacturing endeavors to new heights.

As part of its participation in PLI 2.0, HP envisions a significant expansion of its manufacturing operations in India, specifically targeting the production of consumer laptops. This strategic move aligns perfectly with the evolving needs and demands of India’s tech-savvy population.

A Bright Future for HP and India

In conclusion, HP’s decision to expand its manufacturing operations in India, coupled with its participation in PLI 2.0, represents a pivotal moment in the country’s journey towards becoming a global manufacturing powerhouse. As HP embraces the consumer laptop market and taps into the substantial benefits offered by PLI 2.0. Also, the stage is set for a brighter, more prosperous future for both the company and the Indian electronics manufacturing sector. With increased investments and a dynamic approach, HP is poised to leave an indelible mark on India’s manufacturing landscape, and PLI 2.0 is the catalyst for this transformative journey.

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