Cisco to invest ₹671 crore in two years

Like many of the global technological giants, networking equipment maker Cisco has seen the potential of the booming India start-up ecosystem and is making a beeline for it.

Recently, the U.S. company announced that it is committing ₹671.14 crore ($100 million) over the next two years, local media outlets reported. According to the Economic Times, ₹268.46 crore ($40 million) of the fund will go to "early-stage and growth-stage companies," as well as for training some 250,000 students by 2020.

In addition, the company is also planning to open six new innovation labs and three centres of expertise, according to the report.

Last week, Cisco signed a deal with the Andhra Pradesh government that will see the company spearhead digital initiatives in the state, including setting up one innovation centre for Internet of Everything (IoE). The Hindu Business Line reported that the networking company also plans to sponsor a 12-month course in Andhra University "to develop digital technologies for rural areas."

Cisco also plans to design and build a broadband project in the state, which will include a 22,500-km-long broadband network that will cover two million households.

Cisco's executive chairman John Chambers told reporters India may have been behind its neighbouring Asian countries when it comes to adopting technology, but thanks to the government's flagship projects Make in India, Digital India and Start up India, the country is now "well positioned to lead in digitisation."

Cisco currently employs more than 10,000 people locally, and company wants to expand its base. The ₹959.732 crore company plans on setting up its first Indian manufacturing unit in Pune, and it will also serve as an export hub for the U.S.-based company. LiveMint quoted Chambers saying, "We have already had a conference with 93 global suppliers in Bengaluru to lay the groundwork what digital manufacturing means, what we expect out of our supply chain... it's a pull through effect."