China's Lenovo Group will start making artificial intelligence (AI) servers at its plant in southern India and opened an AI servers-focussed R&D lab in the tech hub of Bengaluru, the electronics hardware maker said on Tuesday.

Lenovo (OTC: LNVGY) expands AI server production in India & aims to export 60% of output to Asia-Pacific amid growing market projected for 18% CAGR.

Another win for the Make In India policy, but a small one in terms of product volume Lenovo revealed on Tuesday that it will manufacture AI servers at its plant in Puducherry, India, and has opened a new infrastructure research and development lab in Bengalaru.

The company’s Puducherry plant, operational since 2005, has been upgraded to produce enterprise AI and GPU servers.

Lenovo India managing director Shailendra Katiyal said on Tuesday that the company will make servers locally and also export them from its manufacturing unit in Puducherry.