Compal Electronics has partnered with the Kalyani Group's electronics division to enter the Indian market. The companies signed a memorandum of understanding to develop server operations using local manufacturing, aligning with the Make in India policy.
Compal announced plans to assist the Kalyani Group's electronics division with technical support for server production, assembly, testing, and sales. The agreement also includes the potential for future expansion into consumer electronics. While Compal previously operated a smartphone factory in India, it temporarily withdrew due to reduced business volumes.
Compal is expanding its server business with new server solutions based on Intel's Xeon 6 platform, focusing on AI, HPC, and cloud applications. The company will participate in Nvidia's GTC conference next week and expects double-digit year-over-year growth in server revenue by 2025.
Anthony Peter Bonadero, general manager of Compal, expressed enthusiasm for collaborating with the Kalyani Group, highlighting Compal's commitment to advancing its server business through diverse partnerships. He noted that the Kalyani Group's extensive Indian market experience would enhance their cooperation.
Amit Kalyani, vice chairman of Bharat Forge, is confident that partnering with Compal to produce server products in India will enhance the competitiveness of the country's manufacturing sector, adding that he is optimistic about the collaboration's future.
Expanding tech horizons
The Kalyani Group's electronics division, known for producing components for electric and commercial vehicles, plans to expand into the ICT sector in the current year. The focus will be on AI and server products.
In February 2025, the Kalyani Group's electronics division revealed plans to launch domestically manufactured servers at its Pune facility in Maharashtra. According to stock exchange documents, the initiative would boost local business activity and significantly enhance the region's manufacturing potential.
Article edited by Jerry Chen
