PC Maker Lenovo plans to foray into North India

New Delhi: Lenovo has announced plans to set up its second manufacturing unit in India, close on the heels of Dell making its manufacturing.

The PC maker is said to be looking at a location in North India following an approach similar to HP and HCL, which are also opening another production line in Uttaranchal. The state has suitable tax soaps regime becoming a favorite destination for investments from various manufacturing companies. The proposal for the unit in North India is being chalked out with discussions related to investments, locations and the capacity along with the strategic concerns.

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The largest domestic PC maker, HCL, has already started its second facility and HP has informed of its plans to open its second unit in the norther region in early 2007. HCL's first production unit is located at Pondicherry, while HP's existing facility is in Bangalore. This will be Lenovo's seventh manufacturing facility in the world, apart from five manufacturing centers in China itself.


Lenovo, the Chinese PC maker, has its existing manufacturing unit in Pondicherry, South India, after it acquired the global PC division of IBM. This unit has a capacity to manufacture 3.7 lakh units and last fiscal it the company generated a of more than 600 crore in India through the sale of its manufactured products.

Lenovo, is looking to grow in its sales presence in the India by opening an online sales channel. According to sources, Lenovo is also looking to move into the online distribution platform for all its products, moving along the heels of other global giants. Even Dell, hooking up the direct sales channel to consumers, for selling PCs is in the process of entering the online sales category.

Lenovo currently sells through conventional IT distribution channels in India, which includes sales representatives, distributors and channel partners or resellers. For its strategy of online sales, Lenovo is planning to slash down the price of products specially to reach semi-urban and rural India.