Lenovo aims to generate between $5 billion and $6 billion revenue from its Indian operations in the next 3-5 years as the Beijing-based company’s “three waves” strategy takes effect, top company officials said on Thursday.
“We see $5-$6 billion coming from India in the next 3-5 years,” Yang Yuanqing, chairman and CEO of Lenovo, told the media here. He did not give a figure on how much India contributed to the group’s overall revenue last financial year.
‘Fast growing business’
“Data centre is a very fast growing business and it grew 44% year-on-year (globally),” he said. “We lost money in the last one to two years in this business. We did not expect we could make money in a short period. Now we stand a good chance to make money from this business,” he said.
Lenovo designs develop, manufactures and sells PCs, tablets, smartphones, servers and electronic storage devices. It also makes IT management software and televisions. In India, 52% of the revenue came from PCs and tablets while smartphones accounted for about 40%. The rest came from data centres.
Mr. Yang said Lenovo “made a mistake” in selling only smartphones of Motorola, which it acquired four years ago, in India. Since last year, they had also started selling Lenovo phones in India, the only nation where both the brands co-exist.
“Dual branding is working for us successfully.”
Rahul Agarwal, managing director, and CEO, Lenovo India, said the company was following a “three wave” strategy in India. The first was to attain a leadership position in the PC segment, second in smartphones and data centers, and third in artificial intelligence.
“Last year was the best year ever,” Mr. Agarwal said. “We were ranked number one by IDC in the tablet segment and our PC and smart devices grew 43%when the overall market grew only by 5%,” he said.