Zoho to Expand Hub-and-Spoke Model in Uttar Pradesh from 2026

Zoho plans to announce its expansion in Uttar Pradesh this year, with operations expected to scale from 2026 under its decentralised “hub-and-spoke” model, founder and chief scientist Sridhar Vembu said. The plan is a return to the company’s north India expansion after a pause of nearly 18 months. 

Vembu said Zoho had slowed new regional initiatives while it focused on internal priorities linked to artificial intelligence. He said the company now has greater clarity on managing AI-related changes and is ready to restart geographic expansion. 

Decentralised Model for Smaller Towns 

The Uttar Pradesh expansion is expected to follow Zoho’s approach of establishing regional hubs supported by smaller centres in nearby towns. The model was first implemented in Tenkasi, Tamil Nadu, in 2011 and later developed into one of the company’s major development centres outside Chennai. Madurai functions as another regional hub in the state. 

Zoho has extended this structure to Andhra Pradesh, where Renigunta acts as a key centre, and has also set up operations in smaller towns in Kerala. The company has indicated that its presence in Uttar Pradesh will be built in a more structured manner under the same decentralised framework. 

Semiconductor Fabrication Plans Deferred 

Vembu said Zoho continues to invest in semiconductor design but has paused plans for a semiconductor fabrication plant. He said chip manufacturing is capital- and resource-intensive and that the company prefers to prioritise software and AI-related work before committing to large-scale manufacturing. The fabrication plan may be revisited in a couple of years. 

Semiconductor design remains part of Zoho’s longer-term roadmap, while manufacturing has been deferred until the company has greater capacity and clarity. 

Local Hiring and Internal Training 

Zoho has said a significant share of its workforce in regional centres is recruited locally. Employees are trained through internal programmes such as Zoho Schools of Learning, rather than relying only on conventional campus recruitment. 

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Conclusion 

The Uttar Pradesh expansion indicates a restart of Zoho’s decentralised growth plans following a period of internal focus on AI and core software priorities. 

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