The company plans to hold a news conference in New Delhi today to announce the new unit and its strategy for selling computers in India.
Dell's India office and Internet infrastructure to take orders online will be based in the southern city of Bangalore. The company will not make computers in India but will import them from its facility in Penang, Malaysia, said a public relations executive for the company.
Dell will compete in India against companies such as HCL Infosystems, India's biggest computer maker, and the subsidiaries of Hewlett-Packard, Compaq Computer and IBM, which make machines in India and have well established networks of distributors and resellers.
It could, however, be a good time to join the fray.
India's computer industry recorded its best performance in four years in the last financial year. Spending on computers and related goods such as printers jumped 30 percent to US$3.9 billion (165.4 billion rupees) in the year to March, according to IDC India, a subsidiary of U.S.-based market research firm IDC.
The market researcher expects the industry to grow at the same rate for the next few years.
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