AMD to rework India plan to bag contracts

KOLKATA
The Economic Times

Having failed to break through Indian government tenders which specifically sought processors from its rival Intel, microprocessor maker AMD has adopted a multi-pronged strategy in India. The company has initiated talks with the Centre and various state governments and appointed research IDC to quantify the impact of missing out on such big contracts.

AMD is also going to launch a campaign - ‘See For Yourself’ - which will focus on showing the value proposition of its processors. The company hinted that future investment in India will be driven on the basis of its participation in government projects. “All we want is a level playing field, fair and open competition,” AMD India V-P (sales & marketing) Ramkumar Subramanian said on Monday.

The company has approached various central government ministries, union communications and IT minister A Raja, Competition Commission of India and the state governments. “Preliminary reports by IDC suggest that 80-85% of government tenders are blocked for the company since most of them specify Intel-based computers,” said Mr Subramanian. AMD officials think the company is losing major growth opportunities in India since the government vertical is a major business area. “We can offer great value proposition to the government with the best in technology. We are creating showcase projects which we are highlighting to the government,” AMD corporate VP (Asia Pacific region) Ian Williams said.

The company has identified India as a global innovation hub and has set up R&D facilities in Bangalore and Hyderabad. “The Indian R&D is already driving major global projects with around 650 people on the rolls. As government tenders get unlocked for us, it will increase our presence in the market and drive investment,” Mr Subramanian said.

It is a cyclical factor,” said Mr Subramanian.

AMD plans to increase awareness amongst government circles through a new global promotional campaign, ‘See For Yourself’. This campaign will focus on the performance, power and cost of AMD processors and will be soon launched in India. “In fact, the problem with government projects is not unique to India. But it can increase our revenues manifold,” said Mr Williams.