Microsoft to Make and Sell PCs in India

Microsoft Corp. said on Wednesday it had entered into an agreement with Advanced Micro Devices Inc. and Zenith Computers Ltd. to make and sell personal computers in India.

The computers, priced at 21,000 rupees, would be sold in 10 retail outlets each in Bangalore and Pune from July on a test basis for three months and will be expanded later on the basis of response.

"We don't see any gain in the short term. Our perspective is long term," Microsoft India chairman Ravi Venkatesan told reporters.

In 2006/07 the total installed base of PCs in India was 22 million, that is, a PC for about every 50 Indians, industry tracking body IDC said in a recent report.

The company said its online portal www.msn.com will provide educational content to students. It also plans to launch a job search service this year for the country's nearly 400,000 engineers graduating every year.

Microsoft said it was in talks with partners in government and industry for the job search portal.

Microsoft's job portal will compete with Info Edge (India) Ltd.'s www.naukri.com and Monster Worldwide Inc.'s www.monsterindia.com, among others.