Dell to open first Indian factory

Dell aims to double its workforce over three years in India

Computer giant Dell is to open its first manufacturing plant in India, in the southern state of Tamil Nadu, as part of wider expansion plans.

The factory, which is to start operating in 2007, will focus on making desktop computers.

"The state offers an exceptional workforce and unique strategic investment zone," the firm said.

The move comes after Dell recently said it planned to double its workforce in India to 20,000 over three years.

By having a plant in India, Dell would be exempt from certain taxes, which it now pays when it exports computers to India.

The move would also reduce delivery time and costs.

The plant will be situated in a technology park close to the state capital Chennai - formerly called Madras - which is known as a technology hub.

Further international moves include plans to open a second production site in Brazil.