- August 19, 2015
- Posted by: Tridindia
- Category: Latest News
Lenovo is planning to ‘Make in India’ smartphones of Lenovo and Motorola at Sriperumbudur, near Chennai. The company has tied up with Flextronics that is a competitor of Foxconn.
Two weeks after Foxconn (world’s largest contract manufacturer for electronics) announced an investment in India worth $5-billion; the Chinese giant Lenovo said that it would initiate the local manufacturing of smartphones for Motorola and Lenovo in Chennai.
This effort will definitely boost the Indian government’s ‘Make in India’ campaign.
According to Chen Xudong (the chairman, Motorola Mobility Operating Board and president (MBG Group) – Lenovo), the company, Lenovo is not new to India. Several years ago, the company identified the potential of India and therefore invested in the manufacturing of PC earlier. The present investment of Lenovo represents its long-term commitment and the potential that the company sees in the Indian market.
Lenovo said that the facility would produce around 6 million units in the current financial year and almost 12 to 15 million units for the next financial year.
Annually, the company is selling 6.4 million units, as per the market estimates and through local manufacturing in the new facility, it hopes to fulfill the domestic demand. The company says that it has not yet decided whether to start manufacturing various other items like smart watches here or export from this unit.
Chief operating officer of Lenovo India said the thrust on ‘Make in India’ campaign in India has opened up a wide plethora of opportunities for global organizations to conduct business in India.
According to him, Moto E has started rolling out while K3 note will be soon rolling out from the plant.
Trying to regain investors’ confidence, the announcement would also acts as the morale booster for Centre and the state government, as last year Nokia decided to suspend manufacturing at Sriperumbudur. That had resulted in almost 30,000 people losing their jobs.