City-based Prayag Group is diversifying into the mobile handset market, targeting tier II and tier III cities.
The company has appointed Bollywood star Govinda as brand ambassador. A TV commercial starring him will soon be released.
Aimed at semi-urban and rural consumers where there is an increasing demand for "value for money" handsets, Prayag Mobile has introduced four handsets priced in the range of Rs. 2,000 to Rs. 3,500.
The company said it will make an investment of Rs. 100 crore in the next two years.
Prayag Managing Director Avik Bagchi said, "We have invested Rs. 25 crore for this fiscal. But by next year we will have a total investment of Rs. 100 crore."
With parts imported from China, Prayag has set up an assembly unit at Joka on the outskirts of Kolkata.
"Depending on the market needs, we plan to establish our own manufacturing unit in West Bengal," he said, adding the company is targeting consumers in the Tier II and Tier III cities in eastern and north-eastern states to begin with.
"The product range is exciting, especially the F1 series (car design) mobile sets for kids which I personally like the most," Govinda said on his new assignment.
Apart from handsets, Prayag has also launched Android based tablet PCs, starting price range from Rs. 7,000 to Rs. 10,000.
Bagchi said in the next few months the company will open own stores to market the products directly.