Lenovo-Motorola ready to set up in India

Lenovo-Motorola combine plans to set up a company-owned factory in India as it expands aggressively. Dillon Ye, head for Lenovo's mobile business group said the Indian market has been growing strongly for the company, prompting it to look at portfolio upgrades and fresh investments.

"We are looking at potential options," Ye told TOI when asked whether the company will set up its own plant in the country, following in footsteps of compatriots such as Oppo and Gionee.

"We are studying the government policy carefully, such as rollout of GST." The company currently sources a part of its requirement from contractmanufacturerFlextronics that makes the devices at its Chennai facility. Phones sourced locally include Moto's E and G models and Lonovo's K Series.

Flextronics has a capacity to supply six million devices annually, which significantly falls short of Lenovo-Motorola's requirements. And, with the company expecting stable growth over coming years.

The company is all set to manufacture from a plant in Bangalore and is understood to have given the contract for the same to Taiwan's supplier Wistron. Local benefits have also prompted other Chinese makers to start sourcing in India.