Domestic mobile vendor Lava will invest Rs 5 billion to set up a manufacturing plant in Tirupati, Andhra Pradesh. The manufacturing plant will be operational in 2017 and will target production capacity of five million phones a month, once it becomes fully functional.

The facility that will be set up over 20 acres of land allotted by the government, and will also manufacture phones for Micromax, Celkon and Karbonn. The facility also aims to generate employment for 12,000 people. Further, the company plans to locally source all components in the next few years.

Earlier in July 2015, Lava had stated that it would invest Rs 26.15 billion over the next 7 years to set up two manufacturing units in India. Once operational, these units are expected to have a combined manufacturing capacity of 18 million handsets per month.