Indian handset manufacturer, Wynn Telecom has outlined plans to invest around Rs 500 crore (US$107 million) over the next two years expanding its brand and setting up a factory in the country. The company currently imports handsets from a manufacturing base in Shenzhen, China.

"We are a new entrant in the handset market and will make necessary investments to tap the opportunities. We have earmarked Rs 500 crore to be spent over the next two years for brand promotion, strengthening distribution chain and setting up a manufacturing base in the country," Wynn Telecom founder and Chairman Rakesh Malhotra told reporters.

The new factory will be based in Himachal Pradesh and will have a production capacity of 1.2 million handsets per month when it opens next September.

The company has set itself a target of 4-4.5 million sales by the end of next March, with its key markets being tier 2 and 3 cities along with rural India.