The company, which introduced its first handset in India in December last year is also aiming to sell about two million smartphones in the country this year.
"We are pleased to enter the Indian market. Assembly will start in our India facility in October this year. Looking at the growth prospects, we plan to start research and manufacturing at a later stage," Vivo Global CMO and Vivo India CEO Alex Feng told PTI.
He added that in the first phase (till December 2015) the company will invest Rs. 12.5 crores for the facility. "The unit will have a monthly capacity of one million units. The process to start the unit is underway," he said.
The government is also offering various incentives like capital subsidy and tax benefits on setting up local manufacturing in the country.
Shenzhen-headquartered Vivo has presence in countries like Thailand, Vietnam, Myanmar, Malaysia and Indonesia. China and India are the two biggest markets for the company.
"Currently, we have four series in our portfolio with devices priced between Rs. 5,990 to Rs. 29,980... We plan to launch five new models in the third and fourth quarter and the devices will be in the range of Rs. 10,000 to Rs. 30,000," he said.