India’s High on Mentor’s Graph

We are not here for cheap labor–quipped Mentor Graphics president Gregory K

Hinckley. Announcing his company’s new Hyderabad office, expansion of its

R&D center in Noida, intake of 100 more people in India, an investment of

$50 million, and setting up of the customer support center, Hinckley said that

India would be one of the most important subsidiaries for the company’s

growth.

"India’s great manpower is strategic to our corporate goals. Indian

R&D centers are showing great work and that is what we need," he added.

Mentor has proposed to invest $50 million in its Indian development centers at

Hyderabad and Noida in the next four years. The company has invested $10 million

in India so far at both the centers. Part of the investments will go in setting

up new facilities in Hyderabad as well as in Noida and a customer support center

at Hyderabad. The support center will commence operations by the first quarter

of next year. "We propose to set up another facility at Noida during

mid-2004 to increase our manpower," Mentor vice-president and chief

information officer Richard J Decker said.

The support centers will handle all the products that are being handled by

the Indian development centers. Working on a markup model, Indian centers

develop products for the international market and handle five out of the eight

product divisions. "India handles approximately 20% of our revenue

generating products." He said. There are 28 engineering sites in world, out

of which India has two. About the roadmap for the Indian center, he says that

the rate of headcount growth reflects the Indian growth. However, on the

worldwide front, Mentor has remained flat. In India, it has grown from an

initial headcount of less than 50 to 250 now, and plans to recruit 100 more in

the coming year. On the Indian EDA market, Hinckley felt that it has higher rate

of growth than the rest of the world. However, he declined to comment on

marketing plans in India.

Shweta Khanna/CNS in New Delhi