Tech major Acer on Thursday said it will start assembling smartphones in India next month at its facility in Puducherry.
The company, which already manufactures computers at the same unit, has invested $10 million to commence the assembly of smartphones.
"We hope to begin assembly of smartphones at our Puducherry unit by middle of December. The initial capacity will be 2.5 lakhs a quarter which can be ramped up in the future," Acer India Managing Director Harish K Kohli told PTI.
The company has invested about $10 million (Rs 65 crore) in the plant, he added.
Global handset makers like Samsung and domestic players like Micromax and Spice have assembly units in India.
Handset makers are looking to tap the multi-billion dollar opportunity in India, which is one of the fastest growing smartphone markets in the world.
The Indian handset industry is poised to overtake the US as the second-largest market in next few years.
According to research firm IDC, shipments in India grew 44 per cent year-on-year to 26.5 million units in April-June 2015 quarter.
Acer on Thursday also launched two new smartphones - Liquid Z530 and Liquid Z630S - priced at Rs 6,999 and Rs 10,999, respectively. The devices will be available exclusively through e-commerce marketplace Flipkart.
Powered by 1.3GHz quad-core processor, the 5-inch Liquid Z530 has 2GB RAM, 16GB memory (expandable up to 32GB), 8MP front and rear cameras and 2,490 mAh battery.
The Liquid Z630S features 1.3GHz octa-core processor, 5.5-inch display, 3GB RAM, 32GB memory, 8MP front and rear cameras and 4,000 mAh battery.