As a step towards the Indian government's Make In India initiative, Lenovo today announced that the company has started manufacturing smartphones at Sriperumbudur facility near Chennai, India. The Chinese company said that it has already started local manufacturing of its subsidiary company Motorola Mobility's Moto E smartphone at the Chennai unit, in partnership with contract manufacturer Flextronics.
Lenovo has integrated with Motorola to form a single team for company operations, but that will not result in dissolution of brands as one entity. Both these companies will remain two separate brands under the same umbrella. Hence, both the companies will be producing locally at the same unit, though through a separate manufacturing line. In fact, this plant is the first unit outside China that will manufacture smartphones for both the brands.
Lenovo-owned Motorola has already started sending out the first batch of locally made 4G variant of Moto E smartphone to its sales partners. It will start making another 4G device, Lenovo K3 note device very soon. Lenovo also claims that they (combined with Motorola's market) are the top selling 4G device vendors in India. The company has already started manufacturing the 4G compatible units of the Motorola Moto E at the Chennai production unit, while the Lenovo K3 Note will join in soon.
The company said that this manufacturing unit has the production capacity of around 6 million handsets at present. While the company plans to churn out 6 million units in this financial year, it also added that the production will be ramped up in accordance to the availability of components locally. The company expects that the manufacturing partner will source about 30% components locally.
Lenovo said that the Chennai facility is spread across 40,000 square feet, and can have 1500 employees for various operations including manufacturing, quality check and testing. This is not the first time that Lenovo is manufacturing in India, as it has already been producing laptops at its Pondicherry plant since 2005.
Amar Babu, COO, Asia Pacific and chairman of Lenovo India, also mentioned that Lenovo has witnessed tremendous growth of 330 percent in India since last one year, and is now number 4 in terms of value and 5 in terms of volume.