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Lenovo-Motorola to make India its exports hub in search of profitability

Motorola phone on the table

India is a country which is loved by the businessmen, especially if they are coming from a foreign land. The reason for that is, everything appears to be cheap here and when it comes to traveling and food with the internet, India is the cheapest. Above all, there is a market for everything in India. The fact that India has 1.3 billion people makes the markets available for everyone. There are the host of businesses in the country and people love it because of its diversity, not culturally but for business as well.

Motorola, the Lenovo-owned company is aware of the same. It is trying to take care of the Indian manufacturing plants it has and make India it’s home for smartphones. The company is looking at the subcontinent with sparkly eyes and money in mind. Motorola is having a hard time coping with companies like Xiaomi, Vivo, Oppo and now Samsung which are dominating the market it operates in. Currently, the company is looking at only 2% market share in the country.

The numbers are against the Lenovo-owned Motorola but they have a plan to earn money. Lenovo and Motorola smartphones are manufactured together and this helps. The company is planning to make India its exports hub. The company is planning to ship the phones to Latin America, South East Asia, and the even Asia Pacific by the end of this month. Currently, 12 million units including Lenovo and Motorola are manufactured by the plant. That is the maximum capacity of the plants.

The PCBs or Printed Circuit Boards, chargers, batteries, and the assembly is done in the country. The manufacturing contract is given to American manufacturers Flex. Prashanth Mani, the country head for Lenovo and Managing Director of Motorola Mobility talked to ET about the exports plans. He said that the business can be scaled up easily and a lot of investment is going into the same but it all depends on demand.

He also talked about making choices and what the first priority of the company is. The idea of the company is to get consumers all the features at an affordable price and the company is not ready to do it at the expense of losses and is looking at profitability.

He said told ET, “We can always scale it up basis the demand. A lot of investment is going into this. We are not in the volume and value-share fights. Sometimes, it’s about making choices, and turning around Motorola into a profitable unit was the first priority. The idea is to get innovative features to consumers at affordable levels. We will not do it at the expense of losses, which some other brands are willing to take.

“Profitability can only happen for a brand if it follows the OnePlus strategy — being present in the mid and premium segment with an online-focused approach. If you want to do it with low volumes, you can become profitable,” he added.

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