Computer maker Hewlett-Packard Co. on Wednesday said it will invest about US$22 million to build a second manufacturing plant in India to meet the growing demand for computers here.
The new plant in the northern Indian town of Pantnagar will cost about 1 billion rupees (US$22 million; euro18 million) and should be operational by March, the company said in a statement.
The Pantnagar plant, about 200 kilometers (125 miles) northeast of New Delhi, will employ about 1,000 people once production starts, the statement said.
It will assemble HP's latest range of desktop computers, workstations, notebooks and servers, with a capacity to produce 300,000 units a month, it said.
The Palo Alto, California-based computer and printer maker already has a facility in Bangalore, India's technology hub, producing up to 80,000 computers a month.
The two facilities will address "the growing demand for HP products across the country," the statement said.
Computer sales in India rose 32 percent to 5.04 million units in the last fiscal year ended March 31, with a robust economy, falling product prices and low-cost loans lifting demand.
HP is the market leader in personal computers in India but faces stiff competition from local computer maker HCL Infosystems, according to technology consulting firm IDC Corp.
"India represents a strategic market for our products in the region," Adrian Koch, a senior vice president for HP's Asia Pacific operations, said in the statement.
"With the skilled talent and a favorable business environment, we hope to grow our manufacturing operations in the country to cater to other emerging markets in the region," he said.
The company also competes with U.S.-based Dell Inc. and Lenovo of China, which now have relatively small market shares but are taking measures to beef up their presence in India.
Dell Inc. said in September it would invest US$60 million to build its first manufacturing plant in India, its third in the region after Malaysia and China.