Lenovo India targets 15% revenue growth in FY 2020-21
On the back of its strength in managing complex supply chains, Lenovo India is aiming to double its PC shipment volume in the financial year 2020-21 and log 15 per cent year-over-year revenue growth during that period despite the challenges brought about by the new coronavirus (COVID-19) pandemic, a top company executive said on Monday.
According to the International Data Corporation (IDC), although Lenovo emerged as the leader in the India traditional PC market in the calendar year 2019, HP Inc. regained the top position in the fourth quarter of last year as its shipments grew 8.6 per cent from the same time a year ago. While HP Inc.'s 4Q 2019 market share rose to 31.2 per cent, Lenovo came second with 22.5 per cent share in the traditional India PC market.
"FY 2019-20 was one of the best years for Lenovo India. Our PC volume is likely to double this year (FY 2020-21). We will mostly be the #1 PC company in India in FY 2019-20, with a likely share of approximately 32 per cent (i.e., +10.5 points year-over-year)," Rahul Agarwal, CEO and MD, Lenovo India, told IANS in an interview.
"We plan to grow our revenues by 15 per cent YoY (in FY 2020-21) and continue our share gain trajectory with 3-4 points share gain," he said.
Agarwal said that it was still too early to assess the impact of the novel coronavirus on Lenovo's sales and supplies in India.
"We are focusing on things we can control and influence. Our business priority continues to be ensuring the health and welfare of the Lenovo workforce, continuity of manufacturing and rebuilding capacity, and assisting those working to contain the outbreak.
"Lenovo is leveraging its geographical balance, operational excellence and strength in managing complex supply chains across a global manufacturing footprint, and solid strategy execution in order to weather the challenges," he noted.
In the India tablet market, Lenovo retained its dominance for the 10th consecutive quarter, grabbing 37 per cent market share in 2019, said a report from CyberMedia Research (CMR).
"On the Android tablets front, we will continue on the path of undisputed leadership and plan to hit 50 per cent+ share in the next year (our likely exit share in Android tablets for FY 2019-20 is 47.5 per cent)," said the Lenovo India CEO and MD.
Propelled by the government-driven education projects and upgrade purchases for Windows 10, the India traditional PC market inclusive of desktops, notebooks, and workstations ended 2019 with 18.1 per cent year-over-year (YoY) growth, shipping 11 million units during the year, according to data from the IDC.
In one of the largest deals in the history of PC industry, Lenovo India supplied 1.56 million laptops to the Tamil Nadu government for distribution to students.
The India tablet market, however, declined 18 per cent in 2019 compared to a year ago, according to the CMR report.
"Lenovo India is equally dedicated to both the market segments - consumer as well as commercial," Agarwal said, adding that as a leader in PC and smart devices industry, the company is attempting to better equip its customers in their end-to-end technology needs.
"We help organisations provide the right tools to maximise employee productivity, collaboration and satisfaction. We have continuously innovated with our product range to meet the demands of various customer groups - be it the world's smallest desktop "Think Nano", with reduced power consumption or the all-new ThinkBook for the new age workforce, to name a few," the Lenovo executive added.
Agarwal said that Lenovo is winning in new form factors like "ultraslim" and "gaming" with its new range of Yoga and Legion series respectively.
"Lenovo is also the fastest growing brand in offline gaming in the country and we expect to continue that momentum. We focus on listening to the gaming community and shaping our Lenovo Legion portfolio and engagement based on their feedback. This is a strong evidence of our commitment to growing the gaming ecosystem," he added.
To increase its market share in India in financial year 2020-21, Lenovo is focusing on "further strengthening" its technical solution capability and partnership with commercial customers in education, finance and government sectors.
Lenovo India is also aiming to grow its service centre network by 10 times in FY 2020-21, Agarwal said.