PC producer Lenovo hopes to develop by 25-30% in the current financial year because of expansion sought after from education segment and huge enterprises, a top organization official said.
Nonetheless, the development may decrease in the next financial year, Lenovo India CEO and Managing Director Rahul Agarwal told PTI, adding that the organization has consistently filled in double digits and will keep on keeping up the trend.
Lenovo is likewise wanting to begin producing tablets in India and extend laptop manufacturing by around 10 times.
“It has been a roller coaster ride this year, but we will grow by 25-30% for the full financial year if we remove the ELCOT deal. The ELCOT deal was 1.5 million PCs which has not happened this year,” Agarwal said.
“The consumer market is to be 4 million. It has been flat for the last 5 years. It is suddenly exploding because of learning from home and is growing by 40%,” he added.
In 2019, Lenovo India had sacked an order from ELCOT, the nodal agency for obtaining electronic hardware and software for Tamil Nadu government and its plans, for giving over 1.5 million laptops to students in the state.
Agarwal said B2B (business-to-business) demand is as yet muted and it might develop by 4-5% for the full year.
As per market research firm IDC, the Indian traditional PC market, inclusive of desktops, notebooks, and workstations, delivered a strong 9.2% year-on-year development in July-September quarter, driven by demand to gain from home.
Lenovo saw 40% development in the shopper segment in October-December period.
Agarwal said the industry is confronting deficiency of components, mainly display panels, which influenced laptops, yet Lenovo had the option to cater to the spike in demand.
“Right now we are seeing shortages of panels for the next 3-6 months. It will impact shipment, but now we don’t expect the market to keep growing because whoever has to buy a PC to learn from home has already bought.
“B2B is almost muted. When the economy comes back, then many companies who have put hold on their purchase will start buying,” he said.
The organization is currently wanting to build laptop manufacturing facility by around 10 times at its Puducherry facility.
“We manufacture very few laptops — major expansion is happening on laptops. We will grow laptop manufacturing by 10 times. Our goal is to meet 50% of the India requirement by end of the year. We will see if the ecosystem grows, then we will expand further,” Agarwal said.
The organization is likewise going to begin manufacturing tablets in India through a original design manufacturer.
“On tablets, we have been more focussed on the commercial side of business. We have 60-65% market share. The consumer market was declining till the time pandemic happened. Suddenly people had to buy tablets,” he said.
“The consumer market has exploded in the second quarter by more than 100%. We are seeing that our tablets, most of them were being sold through retail outlets, but now a lot of them are going from our Moto store outlets, exclusive outlets, large format retail stores,” Agarwal added.
He said tablet PCs with 8-inch screen size have the highest demand, and the organization will at first make Lenovo M8 tablets in India to cater to prerequisites of government, shoppers and students.
Agarwal said the organization sloped up its after-sales service this year the same number of individuals returned to their hometown and began working from remote locations.
Lot of small towns are presently getting covered with the organization’s service and 75% of its purchaser PC sales are from non-education segment.
“We have almost 1,000 service centres and cover 29,000 pin codes in India and we do not refuse service anywhere. Even if it is in a village, we find a way out,” Agarwal said.
As indicated by IDC, Lenovo was positioned second after HP as far as shipment of personal computers (PCs) in India in July-September 2020 period. It was in front of Dell, with a share of 21.7% in overall shipments and saw a 27 percent year-on-year development in the purchaser segment.
Lenovo registered a 46.2% development in its small and medium organizations (SMB) shipments as it arranged the channel to avoid supply uncertainties in the coming months, IDC said.
“SMB used to be around 2.2 million, but it will be flat this year. Enterprise is a mix story. Overall it is going to grow by 10%, but a lot of it was only because of large software companies who had to buy laptops for their engineers because they had desktops,” Agarwal said.
He said enormous scope buys by endeavors are not expected in next financial year, and schools will likewise open eventually which will likewise tighten buyer demand.
“PC market growth will come down next year. When we look at Lenovo, the market has always been flat, but we have achieved double-digit growth. Our goal is to grow by double digits every year,” Agarwal said.
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