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Lenovo to set up headquarters in India

October 01, 2005 12:49 IST

Chinese computer giant Lenovo Group, which acquired IBM's PC business, will set up a headquarters in India to replicate its success in other emerging markets, the company's chairman said.

Lenovo would start the second stage of the consolidation process from October 15, eight months ahead of schedule, said Yang Yuanqing, the chairman of Lenovo, the world's third largest computer maker.

The age of Chinese MNCs is here

The Chinese firm acquired IBM's personal computer business in December, including the Think brands of notebooks and desktop computers.

Lenovo plans to restructure its regional organisation and set up five regional headquarters. Lenovo -- with existing bases in the US, Europe, the Middle East, Africa, and the Asia Pacific region -- will set up a China regional unit, a result of the consolidation of Lenovo China and Lenovo International.

Lenovo will also set up a headquarters in India, highlighting the importance of emerging markets like India, Russia and Brazil, 'China Daily' quoted Yang as saying.

Yang said he had just visited India and Dubai and is confident the emerging markets will become growth engines for Lenovo with transfer of its success in China to similar developing markets.

Chinese firm buys IBM's PC business

During the first stage of the consolidation process, Lenovo Group's original business and the former IBM business ran separately under the names Lenovo China and Lenovo International to avoid drastic changes to customers and the organisation of the company.

"The process will take at least five months, so we can have a smooth operation in organising the management and a stable increase in our business in domestic and international markets," Yang said.

Vice-president of sales in the Chinese market, Chen Shaopeng, said there would not be any layoffs in the consolidation in China, where Lenovo and IBM had two separate groups of staff, distribution channels, and management teams.

According to international market researcher, International Data Corp, Lenovo's shipments grew at three times the market average in the second quarter and its market share reached 34 per cent in China.

Lenovo says it will build a unified management platform for product design and development, supply chain, and sales.

Yang said his company also saved $10 million in May and June, thanks to the integration of procurement for Lenovo and Think products.
Anil K Joseph in Beijing
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