'Make in India': Lenovo Plans to Set Up Smartphone Making Unit, Says Report

Chinese tech firms continue to evince interest in putting up manufacturing facilities in India, buoyed by Prime Minister Narendra Modi's 'Make in India' initiative.

After Foxconn, Quanta Computer and Xiaomi, the latest to hint at such a move is Chinese tech company Lenovo, which already has a manufacturing unit in India.

Lenovo said that is examining the prospect of a facility in India to make smartphones and tablets. It's Puducherry unit manufactures computers.

"We are exploring the opportunity of setting up a manufacturing unit in the country," Bhaskar Choudhuri, director (marketing) of Lenovo India, told The Economic Times.

Choudhuri said his company is encouraged to look at a manufacturing base in India due to Modi's 'Make in India' initiative, apart from huge potential for growth in the country.

Lenovo also plans to strengthen its smartphone business in the country. The company is currently the top seller of laptops, PCs and tablets in India. 

The "smartphone penetration" stands at just 30 percent in the country, he said.

"This shows that there is enough headroom for growth," Choudhuri said.

Lenovo is particularly focusing on 4G/LTE enabled smartphones, as it sees a huge demand for such products.

"We believe that 4G/LTE will be the dominant technology in the years to come," Choudhuri added.

Recently, Apple iPhone assembler Foxconn hinted at plans to set up 10 to 12 manufacturing units in India by 2020. The company plans to shift its operations to India from China due to rising wages there. 

Foxconn's rival Quanta Computer also said that it is exploring the possibility of starting manufacturing facility in the country.

In April, Chinese top smartphone maker Xiaomi Corp had said that it would set up a manufacturing unit and R&D centre in India.