Lenovo is a Chinese multinational technology company and it has recently announced to expect a 25-30% growth in the Indian market. The technology company makes Personal Computers and Laptops and because of the high demand from the education segment in India, the company expects such growth in sales during this fiscal year.
Lenovo India has recently announced to begin manufacturing of laptops, PCs and tablets in India and expand their manufacturing by ten times to cater to the high demand from large enterprises and education sector in India.
The COVID-19 pandemic has boosted the country’s education sector by leveraging technology as schools, colleges and other educational institutions are closed. This has led to the adoption of online teaching platforms and services which has, in turn, boosted the education technology sector in India.
In all of this, digitisation has played a key role and Laptops, PCs and tablets have become the primary devices for online studying, teaching and learning.
Commenting on the same, Rahul Agarwal, CEO and Managing Director, Lenovo India stated that the company has always grown in double digits and will continue with the trend. He further added that if the company removes the ELCOT scheme which was supposed to deliver 1.5 million PCs in Tamil Nadu which could not happen in 2020 because of the Pandemic, then Lenovo will be able to grow by 25%-30% for the full fiscal year, according to a report by Free Press Journal.
ELCOT deal was signed by the company in 2019 wherein Lenovo had to deliver over 1.5 million laptops to students in the state of Tamil Nadu. As mentioned in a report by IDC, a market research firm, the demand for Desktops, laptops, tablets and other workstations witnessed a 9.2% growth on a year-to-year basis in July to September quarter. This percentage of growth is mainly because of the newly adopted learn from home culture because of the COVID-19 pandemic.
Lenovo is working on multiple projects to grow its business in India and it includes improving its Business-to-Business market. The company witnessed a 46.2% growth in the SMB shipments as it prepared proper channels to avoid Supply chain uncertainties, according to IDC.
However, Agarwal knows the market and expects the growth to slow down in the next Financial Year as he states that schools and universities will open sooner or later and high scale purchases by enterprises and firms are not expected in the next year. This decrease in consumer demand will definitely impact the company’s business and growth plans.