While companies from outside India are planning to have manufacturing plants and facilities in India, Lenovo says that the company has already started local manufacturing of its smartphones, and this is happening at Sriperumbudur near Chennai, and this is through a contract manufacturer.
The same facility near Chennai will have manufacturing lines for both Lenovo and Motorola Mobility, the company which the former owns. In fact, the first device that is being rolled out already is the Motorola Moto E 4G, and soon, the Lenovo K3 Note will also be shipped from this plant.
Amar Babu, COO, Asia Pacific and chairman of Lenovo India also said that Lenovo is looking at its partner to source 30% of components locally.
“We are talking to government to improve availability of components locally to improve the total value of devices.”
The Sriperumbudur plant has about 1500 employees for these two manufacturing lines, and they will take care of manufacturing, quality assurance, and product testing. This will be the only plant outside China that will manufacture phones for both Lenovo and Motorola, and the capacity of the plant currently is to manufacture about 6 million units for this financial year.
As recently known, Lenovo and Motorola have started the integration process of manufacturing and supply chain, and the companies are looking at merging several backend operations.
There are quite a few smartphone companies that have talked and are planning in the line of Make in India, as Asus hopes to share some good news by the year end, and Xiaomi has tied up with Foxconn, with the Redmi 2 Prime being shipped with the new manufacturing address.
Other major news was about the world’s largest contract manufacturer Foxconn planning to invest $5 billion in a facility in the state of Maharashtra in India.