Lenovo shuts down its plant in India

New Delhi: PC maker Lenovo has closed down its Baddi plant with a view to rationalize its operations in the country. The plant, set up in 2007, has production capacity of about a million units and employed about 20 people.

From April last year, all production for Lenovo has been undertaken at its second plant in Pondicherry. "With demand slowing down, it was decided that it is best to shut the operations at our Baddi unit and build capacity at our unit in Pondicherry," Lenovo India Managing Director Amar Babu said. The company has a manufacturing unit in Pondicherry with a capacity of three million units of desktops and laptops, and has a staff of over 100 people.

The Baddi unit started ramping down production in March last year and the company is carrying out legal processes like tax payment and government clearance, Babu added. Lenovo may have over-estimated demand for its products in India, when it created new manufacturing capacity, said Diptarup Chakraborti, Principal Research Analyst at Gartner to PC World. Lenovo has a 7.3 percent share in the Indian PC market, as per the IDC report for the quarter of July-September 2009.

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