Lenovo India pitches govt desktop tenders with Made-in-India motherboards
Lenovo India, a personal computer (PC) and laptop manufacturer with $1.9 billion in revenue, has launched a new desktop computer that features a locally sourced motherboard. According to a senior official, this move is expected to give the company a stronger position when bidding for government supplies. Additionally, officials have noted that the demand for laptops in India has now stabilized after a boom during the COVID-19 period when schools and colleges held online classes.
Lenovo India makes its desktops and laptops at its 1.4 million units plant here. According to Saurabh Agrawal, Chief Operating Officer, the production of desktops with Made-in-India motherboards makes the machine compliant with the Indian government's Preferential Market Access (PMA) policy. Lenovo India now qualifies for the Class 1 PMA bracket, with over 50 percent of components being fulfilled through local manufacturing for a select range of products. This will give the company a better weightage while bidding for government tenders for desktops.
With the recent announcement of approval to 27 firms under the PLI 2.0 (Production Linked Incentive) for the IT Hardware Scheme, Lenovo India has the additional impetus to increase PC production capability and, thereby contribute to India's Make in India initiative, the company said. A senior Lenovo official said that nearly 40 percent of the commercial segment is accounted for by desktops, which is a sizable number and the increasing sales of laptops will not majorly impact the desktop market.
Lenovo India's plant in Puducherry produces 70% of desktops and 30% of laptops and other devices. Currently, the plant is working at 45% capacity. Last year, it manufactured 7.4 lakh units, and this year's target is to produce one million units. Every 24 seconds, a desktop or laptop rolls out of the assembly line. However, Lenovo India declined to comment on the production numbers. The company outsources manufacturing its mobile phones and tablets to two contract manufacturing locations.
