Flextronics will ship handsets by April 2007 and Foxconn will start manufacturing by August this year, said Miles Flint, president, Sony Ericsson Mobile Communications International AB. Flextronics and Foxconn are Sony Ericsson's major global outsourcing manufacturing partners and the company's plans for India are an extension of the existing relationship with the electronic component manufacturers, he added.

Initially, the focus will be on manufacturing basic colour phones and mid-level music enabled phones for local distribution, Flint said. In addition to competitive pricing, Sony Ericsson will offer local content and customised keypads, he added.

"Local manufacturing will result in improved cost efficiencies and enable us to offer attractive products at even more competitive price points," Flint said.

Addressing a press meet, Union minister for communications and IT Dayanidhi Maran said, with Sony Ericsson, India now has all five major mobile handset manufactures including Nokia, LG, Samsung and Motorola, producing their phones in the country. This will offer a cost advantage to customers and will help to cross the 25-crore subscriber mark by the end of 2007, he added.

Sony Ericsson also opened its first sales centre in Chennai. Sudin Mathur, general manager, Sony Ericsson, India, said, "by the end of 2007, the company will open 200 such centres across 35 cities to reach out to customers directly and give them a feel of Sony Ericsson phones."

Sony Ericsson has a 9% market share in terms of volume and 13% market share in terms of value in India, he said. With local presence, the company is looking at a higher level of penetration in the tier II and III cities, where future growth is poised, he added.