Lenovo seeks approval to extend India biz

Chinese electronic manufacturer Lenovo has sought approval from the government to manufacture and sell mobile phones and computers in the country.

An application was filed by the company with the Department of Industrial Policy and Promotion (DIPP) on Wednesday, according to the latter's website. On the same day, it was revealed the government had given its green signal to Apple Inc to open retail outlets in the country, albeit with the rider of sourcing 30 per cent material locally.

While Lenovo has sought permission to extend its wholesale trading business, earlier reports had suggested the company was interested in securing a single-brand retail licence as well.
 

The government's strict stand on the mandatory sourcing norms in the case of Apple could cloud Lenovo's future ambitions.

A similar case in point is the fate of two other Chinese phone makers - Xiaomi and LeEco - hanging in the balance, following their request to waive off the sourcing norms.

Currently, Lenovo banks on a network of about 4,000 stores, including 950 exclusive franchises, to sell its products in the country.

The company expanded to 230 stores last year, of a target of 250. It also has an e-commerce store but sales through it are yet to pick up.

Lenovo had said an overwhelming majority of its business, almost 85 per cent, comes from brick-and-mortar retail units.