Lenovo expands manufacturing in India to meet rising demand

Chennai: Lenovo on Thursday said it is significantly expanding its local manufacturing activities in India to help meet increasing domestic customer demand.

The company’s in-house PC manufacturing plant in Puducherry has been expanded to include a third manufacturing line, thereby doubling capacity to two million units, Lenovo said. It has also launched local manufacturing of its tablet computers, in partnership with Wingtech Technology, at a plant in Tirupati, Andhra Pradesh.

Additionally, smartphones for Motorola (a Lenovo group company) are now locally manufactured in partnership with Dixon Technologies in Noida, Uttar Pradesh.

Lenovo employs more than 1,500 direct and indirect employees in these three manufacturing plants. While historically the company was meeting around 15%-20% of domestic demand through local manufacturing, in the near term, it is estimated to cross the 30%-35% mark, Lenovo said.

Lenovo Group’s total revenue in India was approximately $462 million for the quarter ended June 30, representing year-on-year growth of 31%. The company said it is expanding in India across all business lines, including PC and smart devices, smartphones, infrastructure solutions, and newly established services and solutions group. The Lenovo Puducherry plant, which has been operational since 1999, had previously been expanded to include Lenovo’s IdeaPad notebook computers from its consumer portfolio. Now, with the addition of a third production line, the facility has begun manufacturing products across Lenovo’s full consumer and commercial range including desktops, notebooks, and workstations. The company said it has invested significantly in automating and digitizing the facility.

In Tirupati, Lenovo recently began manufacturing tablet computers with its global partner Wingtech. Production began with a small number of models and has expanded since then.

Motorola has partnered with Dixon to manufacture nearly 100% of its smartphones for customers in India and has also begun exporting to selected nearby markets.“With various initiatives launched by the government to promote ‘Make in India’, the industry is more encouraged to support the needs of local customers through local manufacturing. In line with our sincere commitment to manufacture locally, the expansion of our manufacturing capabilities in India will help us offer innovative devices of highest quality, produced here and rapidly brought to market,” Shailendra Katyal, MD, Lenovo India, said.


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