Citing market potential, Lenovo eyes server manufacturing in India

Technology major Lenovo is looking to start manufacturing servers in India as the region provides market opportunities. This is in tandem with the growth of its data center solutions business, as the company expects its Infrastructure Solutions Group (ISG) vertical to record double digit growth, said Vlad Rozanovich, Senior Vice-President, Infrastructure Solutions Group, Lenovo.

The data center business is fuelled by AI, storage and high-performance computing. As Lenovo looks to grow further, it aims to have a localised manufacturing. “Although the data center is a smaller portion of the business for Lenovo, it is the one that is going to have a bigger growth. Hence, we want to make sure we have the capacity to complement the rapid growth as the current footprint wouldn’t be enough,” Rozanovich told businessline on the sidelines of Lenovo Tech World India event.

PLI scheme
Lenovo has a sizable manufacturing footprint in India as it produces its PCs, notebooks, smartphones, and tablets. This is also partially fuelled by the government’s provision of Production Linked Incentive(PLI).

Going forward, the company aims to focus on opportunities in India, both in the private and public sectors, to make further inroads in the market. “If we can grow the customer base in India, we set up data center hub location that services India and the broader Asia Pacific market. We can also expand and do more in areas including software development and firmware,” said Rozanovich.

Talking about the adoption of AI services and solutions in India, he said that during a recent meeting with Indian CIOs, he was surprised to find that all of them are actively engaged in AI workstreams. Their initiatives ranged from optimizing machine vision in manufacturing to developing AI-driven models using large or small language models.

“The progress in AI adoption appears faster than anticipated, with CIOs currently deciding on investment allocations between AI and compute refresh. Revenue is being spent on storage part of AI and the security aspect,” he said.

Rozanovich also noted that focus on expanding the partner ecosystem is also a priority as a strong ecosystem and various partnerships, whether in software, components, or consulting, is valuable for the company’s growth in the region. The Hindu BusinessLine