"We are in process of getting land in northern India. The 50-acre unit have an annual capacity of 30 million units. It should be operational in about two years," said Gionee India MD and CEO Arvind Vohra. He declined however to share details about the location of the plant.

"It will be an end-to-end manufacturing unit. It will help us cater to demand in India as well as nearby markets and African region.We will invest about Rs 500 crore on the plant," Vohra said.

About 60 percent of Gionee India's devices sold in the country are manufactured locally at facilities run by Foxconn (Tamil Nadu) and Dixon (Noida).

According to research firm IDC, smartphone shipments in India grew 17.1 percent sequentially to 27.5 million units in April-June quarter, with Chinese vendors like Lenovo, Xioami, Gionee and Vivo driving the growth.

The shipments have revived after two successive quarters of decline. Samsung led with 25.1 percent market share followed by Micromax (12.9 percent), Lenovo Group (7.7 percent), Intex (7.1 percent) and Reliance Jio (6.8 percent). Vohra said Gionee India has crossed half million units sales per month and by year-end, he expects the number to go up to one million.

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