Lenovo to play major role in TN Govt’s free laptop scheme

Chinese PC major maker Lenovo India is looking to play a significant role in the upcoming fourth and fifth phases of the Tamil Nadu government’s free laptop program from the implementing agency, Electronics Corporation of Tamil Nadu Ltd (ELCOT). Over 1.1 million notebooks will be supplied to the ELCOT at the end of the phase.

According to the Business Standard report, Lenovo will supply about 60 per cent of the 1.1 million units, worth about $150 million (Rs 950 crore), through the next two quarters. Two other vendors, Acer and HP, will supply the remaining units.

According to a recent MAIT report, the notebook market has de-grown by 10% in FY 15 due to the absence of major government projects. But MAIT looks positive as the fourth and fifth phase of ELCOT will be adding to the notebook growth in the current fiscal.

According to Amar Babu, president MAIT and Chairman at Lenovo said, “PC sales are expected to increase by 17 per cent in the current financial year on account of a large contract from the Tamil Nadu government for 1.1 million laptops. Babu said the commercial and technical bids have been opened with Lenovo emerging as the lowest bidder. He did not specify who the other participants were and PC configuration and its cost.”

With ELCOT, Lenovo will definitely become the number one (PC vendor in India) this quarter and the next. According to IDC’s Asia Pacific quarterly PC tracker, Lenovo was third in the overall PC market in India in the quarter ended March this year, with a share of 19.8 per cent. While HP was first (26 per cent market share), Dell was second (23.4 per cent).

Babu also added, “Lenevo has been going through major transformation, previously Lenovo was known for its enterprise business, but over the last 2-3 years, the company has emerged as leading consumer player in the PC and smartphone business.”

Tamil Nadu’s free laptop program for school children was one of major promises of the All India Anna Dravida Munnetra Kazhagam ahead of the 2011 Assembly elections in the state. So far, the state government has distributed about two million laptops under the program, across three phases.

Tamil Nadu and Uttar Pradesh government’s free laptop distribution schemes have been the two major government programs, which had pushed the sale of PC up. In the UP project, the state government had procured 1.6 million units to supply class-XII pass-outs. HP was the sole supplier for the project, which has since been discontinued.