Lenovo expands manufacturing capabilities for PCs, notebooks, smartphones in India

To satisfy rising consumer demand, Lenovo said on Thursday that it is considerably expanding its local manufacturing capabilities in India across product categories such as PCs, laptops, and smartphones.

Lenovo said it is expanding in India across all business lines, including PC and smart devices, smart phones, infrastructure solutions, and especially in the newly created services and solutions group, but without disclosing the amount of money it is investing.

Lenovo has added a third manufacturing line to its in-house PC manufacturing factory in Puducherry, and it has begun local manufacture of its tablet PCs in Tirupati, Andhra Pradesh, in cooperation with Wingtech Technology.

In addition, Motorola (a Lenovo group business) cellphones are now produced domestically in Noida, Uttar Pradesh, in collaboration with Dixon Technologies, according to a release.

“Lenovo's commitment to the government's goal of “AtmaNirbhar Bharat” is strengthened by these activities. They're also part of Lenovo's worldwide production and supply chain strategy, which sees the company service consumers in 180 markets from 30 manufacturing locations across the world, including Argentina, Brazil, China, Germany, Hungary, India, Japan, Mexico, and the United States” it was also added.

According to IDC, India's overall PC market is anticipated to grow to over 15 million units by 2022, up from 10 million units in 2020.

For the quarter ended June 30, 2021, total revenue for all Lenovo Group companies in India was over US$ 462 million, increasing 31.3% year over year.

According to the statement, the Tirupati plant currently manufactures a wide range of Lenovo tablets to satisfy the demands of consumers, educators, and students, as well as those for specialised functions like retail, manufacturing, and healthcare.

The Lenovo Puducherry facility, which has been in operating since 1999, has earlier been extended to include Lenovo's popular IdeaPad laptop computers.

The factory has now began manufacturing products across Lenovo's complete consumer and commercial range, including desktops, laptops, and workstations, thanks to the installation of a third production line, according to the announcement.

This is a 100% increase in capacity over the previous year, it added.

“Lenovo has made substantial investments in the facility's automation and digitization in order to ensure a smooth and efficient production process. There is also a shared testing room and common packing lines for all items. Every product will now have its own setup and testing process as a result of this expansion” It was said.

Motorola, a Lenovo group business, was one of the first to sign up to the government of India's PLI (Production Linked Incentive) programme. It has collaborated with Dixon to manufacture virtually all of its smartphones for Indian clients and has begun exporting to a few neighbouring regions.

Lenovo has invested in employment and skill development to support these local manufacturing activities, and there are presently over 1,500 direct and indirect workers working across these three production sites.

“In keeping with our true commitment to manufacture locally, the development of our manufacturing capabilities in India will enable us to provide innovative products of the best quality, manufactured locally and quickly brought to market,” said Mr. Shailendra Katyal, Managing Director of Lenovo India.

He went on to say that the company's efforts are aimed at creating jobs and skill development opportunities, as well as bringing sophisticated, sustainable manufacturing technology to India.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.