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Dell keen to tap BFSI opportunity, but India’s no China for the company yet

The company, which relisted in December 2018, expects revenue of $93-96 billion globally in financial year 2020.

, ET Bureau|
Jul 31, 2019, 11.37 AM IST
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Dell
The American personal computer and enterprise-server company’s chief financial officer Thomas Sweet told ET that “there’s a fair amount of investment still flowing” into the banking and financial services sector in India.
Dell Technologies is betting on technology disruption in financial services, 5G rollout and digitisation across government offices to drive growth in India, the second fastest growing market for the company after the US.

The American personal computer and enterprise-server company’s chief financial officer Thomas Sweet told ET that “there’s a fair amount of investment still flowing” into the banking and financial services sector in India.

“There’s a lot of banking and financial innovation being driven out of India right now, whether it’s payments or the whole initiative with the government about trying to get the population to bank in a digital environment – that’s driving an enormous infrastructure,” said Sweet.

The company, which relisted in December 2018, expects revenue of $93-96 billion globally in financial year 2020. While half of its business comes from outside the US, there are signs of slow growth in economies such as Western Europe due to Brexit related uncertainties. At the same time, the Asia Pacific region is seeing “great growth” while the US-China trade barriers have added to the overall uncertainty, said Sweet.

He said that the spat has “caused complexity for supply chain management” for the company, which has a global supply chain with 25 manufacturing locations. “We do have a fair footprint in China,” he said.

The Dell Technologies CFO said the company has adjusted pricing wherever it could not mitigate the supply chain issues. However, he said, the company is not yet seeing India as an alternative to China for manufacturing in the wake of the US-China trade tensions.

“We have a manufacturing plant in India, and we have been adding capacity to that plant. Right now, it’s principally focused on the Indian domestic market, and we have done a little bit of exporting to the Middle East. But that plant has generally been for Indian consumption… it hasn’t really resulted in that kind of shift,” said Sweet.

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