BANGALORE, INDIA (09/28/2000) - Dell Computer Corp. Chairman and Chief Executive Officer Michael Dell formally launched his company's direct-to-customer sales and support program in India today. The company will fulfill orders from Indian customers from its facility in Penang in Malaysia.

Dell announced at a press conference in New Delhi that the company did not have plans to set up a manufacturing facility in India. "We have two manufacturing units in the Asian region in China and Penang to cater to the demand in the region," he added.

Selling direct into India has been tried before, but was not successful, Ravi Sangal, president of market research firm, International Data Corp. India told the IDG News Service. "The primary reason is that the Indian market is not as yet inclined to direct buying of any high value product," said Sangal. IDC is a unit of the IDG News Service's parent company, International Data Group.

By shipping its computers to India from Penang, Dell may also be weighed down by a number of logistical and cost-related issues such as distance, high-freight costs and delays in Indian ports. To overcome these obstacles, a number of multinational computer companies selling in India, including Compaq Computer Corp., Hewlett-Packard Co., and IBM Corp. have set up computer assembly operations in India. "I doubt Dell will be able to compete effectively against the players who are assembling in India, both from the point of view of cost and delivery time," added Sangal.

Michael Dell, who was originally scheduled to visit Bangalore where the company's Indian operations are headquartered, had to visit Delhi instead, following a call for a protest strike in Bangalore by fans of a local film star who was kidnapped by a forest brigand over a month ago. Dell announced that his company was setting up a call center in Bangalore that would initially support the company's Indian customers. In India, Dell plans to sell both direct and through distributors who will offer value added services and solutions to customers.

Dell, based in Round Rock, Texas, can be reached at +1-512-338-4400 or via the Internet at http://www.dell.com/.