Celkon Mobiles will set up a research and development centre in Hyderabad at the E-City. It will invest about ₹70-80 crore to establish the centre, enabling it to design components for its phones and tablets.

To come up on a one-acre plot, the centre will act as a design centre for the firm, which sells about four lakh phones a month.

“We are planning to start work on the project in a month. We hope to complete it by the end of 2018. We will spend ₹70-80 crore to build the centre. We will build a one-lakh sq ft space there,” Celkon Mobiles Chairman and Managing Director Y Guru told BusinessLine here on Monday.

The firmhas six manufacturing lines at its facility in Chittoor district.

“We are doubling it to 12 lines, increasing the capacity to seven lakh phones a month. At present, smartphones contribute 30-35 per cent to the total volumes. It would go up to 60 per cent by January after we completed our expansion,” he said.

“The Union Government has set a target to build capacities in India by 2021, making the country self-reliant in all aspects of mobile manufacturing. We are aligning our plans accordingly,” he said.

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