According to the executives of Lenovo Group, China's leading PC maker, the will shut one of its Indian manufacturing facilities to improve production efficiency.
R.K. Amar Babu, managing director for Lenovo India, revealed that the Baddi plant was established in Himachal Pradesh in the northern area of India in 2007. It has a production capacity of about one million units and employs a few dozen people.
He said with demand slowing down, the company has decided to shut operations at the Baddi unit to ensure production efficiency. The Baddi unit started ramping down production in March 2009 and the company is currently in the process of taking all necessary approvals and legal processes to formally shut down the plant. After the closing of this plant, manufacturing will be transferred to Lenovo India's another unit in Pondicherry, in the southern area of India.
The manufacturing unit in Pondicherry has a capacity of three million units of desktops and laptops, and has over 100 employees.
Lenovo has 7.3% share in the Indian PC market, according to the IDC report for the quarter of July to September 2009.