Lenovo expects 25-30% development this fiscal, to start manufacturing tablets in India


New Delhi: PC maker Lenovo expects to develop by 25-30 per cent within the present monetary yr attributable to improve in demand from training section and enormous enterprises, a high firm official stated.

Nonetheless, the expansion might decline within the subsequent monetary yr, Lenovo India CEO and Managing Director Rahul Agarwal informed , including that the corporate has at all times grown in double digits and can proceed to keep up the development.

Lenovo can be planning to begin manufacturing tablets in India and develop laptop computer manufacturing by about 10 occasions.

“It has been a curler coaster experience this yr, however we’ll develop by 25-30 per cent for the complete monetary yr if we take away the ELCOT deal. The ELCOT deal was 1.5 million PCs which has not occurred this yr,” Agarwal stated.

“The patron market is to be 4 million. It has been flat for the final 5 years. It’s all of the sudden exploding due to studying from house and is rising by 40 per cent,” he added.

In 2019, Lenovo India had bagged an order from ELCOT, the nodal company for procuring digital {hardware} and software program for Tamil Nadu authorities and its schemes, for offering over 1.5 million laptops to college students within the state.

Agarwal stated B2B (business-to-business) demand continues to be muted and it might develop by 4-5 per cent for full yr.

In response to market analysis agency IDC, the Indian conventional PC market, inclusive of desktops, notebooks, and workstations, delivered a robust 9.2 per cent year-on-year development in July-September quarter, pushed by demand to study from house.

Lenovo witnessed 40 per cent development within the shopper section in October-December interval.

Agarwal stated the business is going through scarcity of elements, primarily show panels, which affected laptops, however Lenovo was in a position to cater to the spike in demand.

“Proper now we’re seeing shortages of panels for the following 3-6 months. It’s going to impression cargo, however now we do not count on the market to continue to grow as a result of whoever has to purchase a PC to study from house has already purchased.

“B2B is nearly muted. When the economic system comes again, then many corporations who’ve put maintain on their buy will begin shopping for,” he stated.

The corporate is now planning to extend laptop computer manufacturing facility by about 10 occasions at its Puducherry facility.

“We manufacture only a few laptops — main enlargement is occurring on laptops. We’ll develop laptop computer manufacturing by 10 occasions. Our aim is to satisfy 50 per cent of the India requirement by finish of the yr. We’ll see if the ecosystem grows, then we’ll develop additional,” Agarwal stated.

The corporate can be going to begin manufacturing tablets in India via an authentic design producer.

“On tablets, now we have been extra focussed on the industrial aspect of enterprise. We’ve got 60-65 per cent market share. The patron market was declining until the time pandemic occurred. Abruptly folks had to purchase tablets,” he stated.

“The patron market has exploded within the second quarter by greater than 100 per cent. We’re seeing that our tablets, most of them had been being bought via shops, however now loads of them are going from our Moto retailer shops, unique shops, giant format retail shops,” Agarwal added.

He stated pill PCs with 8-inch display dimension have the very best demand, and the corporate will initially make Lenovo M8 tablets in India to cater to necessities of presidency, customers and college students .

Agarwal stated the corporate ramped up its after-sales service this yr as many individuals went again to their hometown and began working from distant places.

Lot of small cities at the moment are getting lined with the corporate’s service and 75 per cent of its shopper PC gross sales are from non-education section.

“We’ve got virtually 1,000 service centres and canopy 29,000 pin codes in India and we don’t refuse service wherever. Even whether it is in a village, we discover a means out,” Agarwal stated.

In response to IDC, Lenovo was ranked second after HP by way of cargo of private computer systems (PCs) in India in July-September 2020 interval. It was forward of Dell, with a share of 21.7 per cent in total shipments and witnessed a 27 per cent year-on-year development within the shopper section.

Lenovo registered a 46.2 per cent development in its small and medium companies (SMB) shipments because it ready the channel to keep away from provide uncertainties within the coming months, IDC stated.

“SMB was round 2.2 million, however will probably be flat this yr. Enterprise is a combination story. General it’ll develop by 10 per cent, however loads of it was solely due to giant software program corporations who had to purchase laptops for his or her engineers as a result of they’d desktops,” Agarwal stated.

He stated giant scale purchases by enterprises will not be anticipated in subsequent monetary yr, and faculties may also open in the end which may also taper down shopper demand.

“PC market development will come down subsequent yr. Once we have a look at Lenovo, the market has at all times been flat, however now we have achieved double-digit development. Our aim is to develop by double digits yearly,” Agarwal stated.



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