This story is from September 29, 2005

Lenovo bets big on India

Sanjay Anand / TNN / Sep 29, 2005, 00:44 IST

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Lenovo, that bought IBM's computer business worldwide, is set for an aggressive push in the Indian market.

MUMBAI: Lenovo, the Chinese PC company that bought IBM's computer business worldwide, is set for an aggressive push in the Indian market, especially in the consumer and small business segment.
As Legend, the company grew over the past decade to be a case study for helping spread PCs in the Chinese market and most of its business still comes from there.IBM, on the other hand, was totally focused on selling in the enterprise market (big business).
At present Lenovo controls about 12.7% of the commercial PC market and about 30% of laptops in India. Now, as the ��new' Lenovo looks to emerge as a global player and increase its presence in emerging markets, it has decided to put India in the top focus category.
"I put India on the top priority market among emerging markets," said Lenovo chairman Yuanquing Yang in an interview with TOI during his first visit to the country. "I am here to understand the market and help set up a good strategy for the company," he added.

Yang said that he wanted Lenovo to grow at double the rate at which the PC market was growing in India. The county's PC market is growing at about 20%. Lenovo's business in India is estimated to be about $300 million.
Although Yang did not specify the targets that he has ...
...set for the Indian market, he indicated that Lenovo plans to almost double its sales to about $500-600 million. "To be able to grow that fast, we are looking at strengthening marketing, branding, supply chain and channel partners.

Besides, we are looking at introducing a wider range of products in India through Lenovo retail shops and outlets," said Yang.
Yang said, however, that his strategy would not focus only on aggressive pricing. As India's PC market grows, more business has to come from smaller towns and villages that would require low-price computers.
In fact, a government report said that the country would require sub-Rs 10,000 PCs to increase computer penetration dramatically to increase IT literacy and push Internet/broadband spread in a big way.
Companies like Xenitis and HCL have introduced sub-Rs 10,000 PCs with much fanfare over the past few months. The Lenovo chief, however, did not commit any price range.

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