Alteration in FDI draws Lenovo to expand in India through single-brand retail
In its recent development, Lenovo-Motorola combine opted for single-brands retail license to spread their wings in the country. Lenovo, whose sales crossed one billion mark in 2015-16, has decided to take full advantage of recently amended FDI (Foreign Direct Investment) norms by opening company-owned showrooms across the length and breadth of the country.
Talking about the company’s growth, Sudhin Mathur, Director, Mobile Business Group, Lenovo India said that the group's turnover in the year ended March 31, 2016, stood at 1.3 billion dollars, nearly doubling from the US $700 million sales in the previous fiscal. Sales have been growing at a healthy pace in India and company expects to maintain a strong momentum even during the current fiscal. While addressing the audience, Mathur also revealed company’s new device called ‘Vibe K5 Note’
According to numbers collated by industry tracker IDC, Lenovo-Motorola combine sold around 10 million units last fiscal, accounting for nearly 10 per cent share in total smartphone sales of 103 million units.
The company, which also sells laptops in the country, has applied for single-brand retail license for retail as well as e-commerce business. This is under the revised retail guidelines that propose an eight-year relaxation for the 30 per cent local sourcing condition. Apart from Lenovo, other companies too have opted for the single brand retail license including Apple and Chinese Leeco.
Smartphone industry sales in India are expected to grow by 30 per cent this year. Lenovo is more optimistic on its business, and expect to grow faster than the industry.