"We are in discussion with Telangana to set up a manufacturing unit. We will be investing up to Rs 800 crore on mobile devices manufacturing in the next three years," Karbonn Mobiles Executive Director Shashin Devsare said.
Production at the Noida plant in UP and Bangalore will start by the end of the month and end of the year, respectively, he added.
"In a year, we expect local production to meet 60-70 percent of our domestic market requirement," he said.
Karbonn is a joint venture between Jaina Group and Bengaluru-based electronics manufacturing firm United Telecom Limited. Mobile phone companies are looking to make handsets in India after the government in its budget increased duty for imported devices.
Global handset makers like Samsung and domestic players like Micromax and Spice have assembly units in the country. Given the government's push for 'Make in India', many device makers have evinced interest in starting manufacturing in the country.
According to research firm IDC, Samsung led the smartphone market in India with 22 per cent share, followed by Micromax (18 per cent), Intex (8 per cent), Lava (7 per cent) and Xiaomi with 4 per cent share in the fourth quarter of 2014.