Chinese computer and electronic device-maker Lenovo is looking at expanding its manufacturing operations in India after it had shut down its second unit in Himachal Pradesh a couple of years ago citing decline in sales.
Currently, the company has a manufacturing unit in Puducherry. This came as part of the acquisition of IBMs global PC business by Lenovo in 2005.
Company officials recently met senior officials of the Andhra Pradesh government weighing the state as one of the options to locate an assembly line.
“The investment they have indicated is about $10 million for the proposed assembly line,” a state government official told Business Standard. If it chooses AP, then the unit would to be located in Sri City, the private multi-product SEZ cum industrial park, closer to Chennai, according to the official.
The company is expecting to increase Indian sales through the newly launched products such as Idea Pad among others.
Though the infrastructure and land is readily available in Sri City, any extra incentives from the government may not be available because only those upwards of Rs 200 crore investment are considered as mega projects for the purpose of offering tailor-made incentives by the state government.
The unit, otherwise, will have to provide direct employment to 2,000 people to be eligible for additional incentives, the official said.