Financial Times

Intel bullish about growth
Sets up Sri Lanka office, keen on policy initiatives
By Akhry Ameer
Intel Corporation, the world's top semi-conductor manufacturer formally announced the opening of a local office last week with expectations of bullish growth in the long-term.

Intel's local office will be targeting a compound annual growth rate (CAGR) of over 25% in the next five years, while strengthening its distribution and working with government on policy issues and education.

The government interaction specifically would be focused at a policy and solutions perspective, according to G.B.Kumar, Director (Sales) - South Asia. Discussions on policy would include the lowering of taxes. "By maintaining high taxes the government is taxing its future. It also creates tax evaders who will be doing business elsewhere in countries like Singapore or Hong Kong. As a result companies who want to invest don't see the size of the market. We would be working with the government to change this," said Kumar.

Kumar added Intel would not be affected by a low tax regime as it would still gain through global sales, but it would affect the level of its investment in Sri Lanka. It is estimated that a significant share of over 50% chip requirement is being imported, dodging taxes. "If this can be converted government gets recognition and can attract investment."

Another significant role of the local office would be its initiatives in education. The company would work with schools and universities in computerisation projects such as setting up of labs. E-government projects at all stages from pilot to full implementation would also receive direct input from the local office.

Intel's immediate plans include the recruitment of a business development manager and architecture manager to provide support to the local distribution. The company plans to double its existing distribution to 250 distributors and retailers during the year.

The office which is the first in Asia Pacific under the chip manufacturers Worldwide Emerging Markets Expansion Programme will be conducting a series of Business Advantage Seminars across seven cities starting this week.

The seminar educates enterprises on bottom-line business benefits of latest IT solutions, and the planning and management of effective technology upgrades of PC's, notebooks and servers.

Intel Corporation is a 35 year-old global company supplying computing and communications industries with chips, boards, systems and software building blocks for computers, servers, networking and communications products.

Its Pentium microprocessors still account for a predominant share of its revenues. Currently Intel markets the Pentium 4 microprocessor with its proprietary Prescot and Hyperthreading Technology that enhances the computing experience with multi-tasking activities as its top end product.

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