Dell computers could soon be sold with a 'made in India' label. CNBC-TV18 has learnt that the company plans to set-up a manufacturing unit here at home. Dell, which sells most computer systems in the world, already has software development, R&D and customer service centres in India.

Excerpts from CNBC-TV18's exclusive interview with Kevin Rollins, CEO, President, Dell.

Q: Why have you chosen India to establish your plant?

A: I think if we're going to be in India, which is one of the largest and growing markets in the world, we really need a factory there. It's true, not only from the tax and tariff standpoint but also from a logistical standpoint. We want to be very close to our customers and we also think the market potential is there.

Q: Where will the plant be located and what sort of numbers of employees are you looking at for the plant?

A: We're looking at several locations and as soon as we conclude we'll certainly alert the media and Government officials.

Q: A couple of years ago, you had complaints from commercial clients about call center responders in India, their accents. Is that an issue that has been resolved?

A: I don't think it's completely resolved, I think it's resolved enough. The world is becoming a global place and understanding accents and global participants is what we do as a global community. Our growth has been unabated. We continue to hire and bring more talent in India. I think most recently we've pushed towards technical development there, R&D labs as well as our own software development for running Dell. We've broadened out the need and the use for the tremendous technical ability which exists in India beyond just call centers.

Q: Is it right that Dell is actually expanding its call center activity in India?

A: It is right. We've maintained most of our corporate call center technical support within the United States but as we've grown our consumer, our software and peripheral business, and our small corporate business, we've expanded that globally into India actually.

Q: Is Dell also targeting the Indian Government?

A: In India we're fairly new in terms of India as a market. We will be working with the Government but as we enter a country we start off first with multinational corporations and then move to national corporations, then we move to Government entities, whether it be education, Federal Government or state governments, and then, last of all, we move to the consumer space. That will be same progression we'll take within India as in China, the US, Japan, Brazil. I think that's what we'll see as the progression.

Q: How effective has the direct selling model of Dell been in India?

A: Well, so far it's done extremely well because we've followed the same progression. Dell is well known as a corporate player. 85% of our revenues globally are from corporations, governments and institutions, 15% to consumers. And so, as we would have predicted, many multinational companies are already Dell customers. As they operate in India, we are able to meet their needs initially and then expand into Indian national companies.

Q: Is it difficult penetrating the Indian market especially since it's so cost sensitive?

A: As you know, corporations behave differently from consumers. The consumer is the most cost competitive, but I would say that we are not selling into that low selling price market category yet.