PC maker Lenovo will shut down its Baddi plant with a view to rationalise its operations in the country.
The plant, set up in 2007, has production capacity of about a million units and employed about 20 people.
"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 told reporters here.
The Baddi unit started ramping down production in March last year and the company is carrying out legal processes like tax payment, government clearance etc, he added.
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.
"Eventually, we would look at increasing capacity at the Pondicherry unit as demand picks up," Babu said.
Lenovo has a 7.3 per cent share in the Indian PC market, as per the IDC report for the quarter of July-September 2009.