Cisco president John Chambers in New Delhi on Wednesday. Picture by Prem Singh

New Delhi, Oct. 19: Cisco Systems will invest $1.1 billion in India over the next three years.

Company president John Chambers termed it as ?the largest and most comprehensive announcement? for the global networking giant outside the US.

The plan involves an investment of $750 million for research and development (R&D) activities, including training and staffing. Chambers said the investment in R&D will be broad-based in nature. ?It will be second only to the US,? he added.

Another $150 million will be dedicated by Cisco Systems Capital ? a division of Cisco Systems Inc ? to provide leasing and other financial solutions to the company?s customers and partners.

A $100-million venture capital fund will also be set up by the company to invest in high-end start-up networking companies in India.

The company also plans to invest $100 million in customer support operations ? a significant portion of which will be allocated for technical services, spare parts depots and channel development.

While the thrust of the company in India is research, it is also open to manufacturing some of its products here.

?In the next two months, our manufacturing people will come down to India to examine that possibility. We can expect to firm up our view on manufacturing by next year,? he said.

Chambers said if the company starts manufacturing in India, it would be in the low-end to start with.

?If Cisco moves to India, many networking companies, who are our partners, will also come here,? he added.

The company will also triple its headcount from 1400 at present over the next three years and hopes to maintain the growth momentum. Cisco has been clocking an average growth rate of 50 per cent during the last three years.

Cisco first started operations in India in 1995. It has its R&D centre in Bangalore.

The company has so far invested in excess of $400 million in India. ?In 2001, we had announced an investment of $200 million in India and we have already invested $400 million,? he said.

In the coming years, the company is primarily looking at the domains of convergence, financial institutions, manufacturing, government and cellular telephones in India, Chambers said.

Chambers, who discussed the company?s investment plans with Prime Minister Manmohan Singh and communications and IT minister Dayanidhi Maran, said there is a good chance of India becoming the largest contributor for the company in the Asia-Pacific region.

The company will also expand the Cisco Networking Academy Programme in the country. Currently, there are 141 networking academies across 22 states. The programme will cover each state and Union territory by 2006.

Cisco will set up the state-wide area network (SWAN) under the Advanced Technology Enablement Programme. Under the programme, Cisco will provide equipment to enable state governments to roll out the SWAN networks.

The company will also set up an IP-based next generation network lab with Bharat Sanchar Nigam Ltd in Chennai. These two initiatives will involve an investment of $10 million.