With Made-in-India motherboard, Lenovo India to pitch stronger for govt desktop tenders

Puducherry, Nov 24

Personal computer (PC), laptop maker $1.9 billion revenue Lenovo India on Friday launched its desktop with locally sourced motherboard which in turn would give a stronger pitch while bidding for government supplies, said a senior official.

Officials also said the demand for laptops in India has stabilized now after a boom during the Covid-19 period due to the online classes held by schools and colleges.

Lenovo India makes its desk tops, 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 per cent 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 IT Hardware Scheme, Lenovo India has the additional impetus to increase PC production capability and, thereby contributing to India’s Make in India initiative, the company said. Nearly about 40 per cent 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, said a senior Lenovo official.

According to Agrawal, 70 per cent of the production at Lenovo India’s plant here is accounted for by desktop and the balance by laptops and others.

Officials said the company's Puducherry plant is working at about 45 per cent capacity.

Last year, the plant produced about 7.4 lakh units and the current year production target is one million units. Every 24 seconds, a product – desktop or laptop- rolls out of the assembly line here.

However, Agrawal declined to comment on the numbers.

Lenovo India gets its mobile phones and tabs manufactured at two contract manufacturing locations.