Allied Computer International-Asia, a wholly owned subsidiary of the UK-based Allied Computer Industries, recently announced plans to begin producing value-line notebook PCs at its India factory starting in January 2005. 

 

The company is aiming for a production capacity of 5,000 to 7,000 units per month by September 2005, with the 2005 sales target set at 40,000-plus units. Allied has thus far invested around 20 million Rupees (US$455,736; 1 USD = 43.88 INR), but plans to raise the investment to somewhere between 500 million and 700 million Rupees (approx. US$11.4 million to US$16 million). An Allied spokesperson said that the company would float an IPO worth two billion Rupees (US$45.6 million) in 2006 in order to fund expansion plans. Given the lack of PC component makers in India, Allied plans to import components such as CPUs, panels, and hard drives. 

 

In addition to India, the company will also focus on markets such as Sri Lanka, South Africa, Dubai, Australia, and East Africa by extending the reach of its sales and services and by opening service centers and warehouses within target countries. Eventually, Allied hopes to break into Western markets with its notebooks by offering an ultra low price of US$200.

 

The production facility is located at the Export Hardware Technology Park in Gandhinagar, India. In the first phase, the factory will employ around 40 people, with plans to hire 200-250 more employees during the second phase. Plans for the second phase also call for the acquisition of 12-acres of additional land to expand factory space. 

 

In the Indian market, Allied has distinguished itself by offering value-line notebook PCs with prices as low as 29, 999 Rupees (US$683). In a bid to increase market share and generate higher revenue by the end of next year, the company intends to further lower the price on its notebook PCs by 20% to 30% to around 20,000 Rupees (US$455), a drop of 20% to 30%.