HP announced an expansion of its portfolio of made-in-India products, which would help HP strengthen its market share when the Indian government is encouraging locally made electronics products through a series of policies.
According to The Times of India and Business Today, Ketan Patel, managing director of HP India, said HP has joined hands with Flex to expand locally-made products from a single desktop form factor to several form factors, all-in-one PCs, displays, and laptops.
Patel said that HP is increasing local procurement of subcomponents in India, helping the value addition percentages of various products rise from 7-10% in the past to 10-50% now.
According to Financial Express, HP has partnered with Flex to manufacture commercial desktops at Sriperumbudur near Chennai since August 2020.
To encourage companies to invest in locally-made all-in-one PCs, servers, tablets, and laptops, India approved a Production Linked Incentive (PLI) for IT hardware in 2021. Among the top five PC brands in India, only Dell applied for the incentive scheme. HP, Acer, and Asus chose to cooperate with EMS partners. Lenovo produces PCs in its Puducherry facility.
According to a note released by India's Ministry of Electronics & IT, India classified electronics suppliers based on their products' local content. Class-I local suppliers (with local content equal to or greater than 50%) and Class-II local suppliers (with local content greater than 20% but less than 50%) can participate in public procurement.
Increasing local content will help HP consolidate its commercial PC market share in India. In IDC's latest PC market tracker, HP led India with a market share of 31.5% in 2021 and had noteworthy shares of 32.9% and 30% in the commercial and consumer segments, respectively.
