The man who revamped Lenovo India

Amar Babu took over reigns of Lenovo at a time when the company was going through hard times. Due to his dynamic leadership Lenovo has become number one brand in PC segment. Babu did not only revamped Lenovo business in India but also gained the channel confidence which brought phenomenal success to the Lenovo brand.

Initial days

Amar Babu comes with rich experience of ICT industry. He is one of the few stakeholders in the industry who have closely seen the transformation in the PC market in India. Computer device always fascinated Babu. After completion of his studies in computer electronics, he was clear that he would make his career in IT. Early 90s was the era when computers were introduced in India. Computer was new concept for Indians it was moreover a business device and only big enterprises could afford to invest in large computer servers. Gradually small and medium scale businesses saw potentials in the device. Later the concept of personal computers started taking shape. Babu recalls that that was the era when people were largely unaware about computers.

“During my initial days of career, I spent lot of time in educating customers about computers and its functions. There was stiff protest from workers unions against computerization as they thought that the device would snatch their jobs. It was a challenge to convinced them that computer would not take away jobs but make it more efficient”, recollects Babu.

Coming way ahead computer has now became integral part of business.

Revamping Lenovo India

When Babu took over reins of Lenovo India, the company was going through a bit of crisis. Lenovo acquired IBM's personal computer business in 2005. Babu started business operations with his own team. However, many of employees, especially the leaders went back to IBM resulting in a feeling of ambiguity among employees. The biggest challenge for Babu was to gain confidence of the team and channel and establish brand name in the market.

“My initial task was to bring back the confidence of the Lenovo team. We revamped our management. We shared with employees the direction of the company and started making investment. Employees realized that Lenovo is serious in doing business in India and that put lot of confidence among them”, he says.

The second challenge was to bring back the channel confidence. Babu restructured the channel and expanded store franchises. He also created multi brand stores and reoriented the channel program. All these efforts brought back the channel confidence and they started investing in the brand.

“We strengthened our team, focused on brand building and enhanced the overall channel capacity. The combination of all of this helped us to bring lot of confidence back and that positively impacted our business”, says Babu.

Lenovo has grown significantly in India over a period of time. The company has become the number one player in the PC market in India after the IBM acquisition in 2005. Levono’s revenues has grown from 6 percent to 13.7 percent in 2014. The high-profile $2.91 billion acquisition of Motorola Mobility added one more feather of success in the hat of the company in the Indian smart phone market.

Protect and attack strategy

Talking about success mantra of Lenovo, Babu said its 'Protect and Attack' strategy has enabled the company take a lead worldwide. The strategy simply means protect company’s strengths and attack or invest on opportunities. Enterprise business is the biggest strengths of Lenovo. The company has grown to be best known brands in the country. Lenovo looks forward to attack on opportunity in smart phone space.

“PC penetration in India is still very less and there is huge market to explore. We will continue to invest in the PC business. Similarly, smart phones and tablets market has huge business potentials in India. These are the areas where we will be investing and growing”, says Babu.

Channel development

Babu says that the biggest strength of Lenovo lies in its channel.

“We work with our partners to enhance the overall channel capacity. Due to our strong channel network we are able to grow our business significantly”, says Babu.

Expressing views on huge online discounting, Babu said that as a brand Lenovo does not support any unhealthy competitive business practices. Lenovo has clear differentiation in products sold on online market places and offline channel.

“We have taken numerous sets of action to maintain healthy price hygiene. We have authorized partners that sell Lenovo products online. We make sure that they trade on these market places at fair prices”, he says.

Babu strongly feels that despite of high penetration of smart phones and tablets, PC market will exist in the market. He says that with new technologies coming in and proliferation of internet of things, he does not see complete replacement on any device. However, form and usage slots would differ over a period of time.

Babu says that Lenovo would continue to invest in the enhancement of channel capacity as well as product innovations and service capabilities.

“We have grown to be best known brands in the country. Our ambitions are clear that we want to be the leader in the business we operate”, he says.