Lenovo consolidates with IBM, sets up India branch
By Liu Baijia (China Daily)
Updated: 2005-10-01 06:07

"It is just like the usual Lenovo tactic: first test the water and then push it aggressively," said Zhang.

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 US$10 million in May and June thanks to the integration of procurement for Lenovo and Think products.

The Chinese computer giant will also reorganize its regional organization and set up five regional headquarters. As well as existing bases in the United States, Europe, the Middle East, Africa, and the Asia Pacific region, Lenovo will set up a China regional unit, a result of the consolidation of Lenovo China and Lenovo International. The company will also set up an HQ in India, highlighting the importance of emerging markets like India, Russia and Brazil.

Yang said he had just visited India and Dubai in the United Arabic Emirates and is confident the emerging markets will become growth engines for his company, with Lenovo transfering its success in China to similar developing markets.

Lenovo's parent company, Legend Holdings' investment arm Hongyi Investment Co Ltd, has invested 210 million yuan (US$26 million) in East China's Jiangsu Simcere Pharmaceutical Company.

The two companies reached an agreement on Hongyi's investment on Thursday in Nanjing. Hongyi controls 31 per cent of stakes in Simcere, while the rest is still owned by former shareholders with Simcere.