Chennai, June 7 (PTI): The mobile phone market in India is set to take a big leap, with yet another manufacturer, Motorola, announcing the setting up of its $100-million (Rs 450 crore) manufacturing facility at Sriperumbudur, near Chennai.

The company has bought 70 acres and the facility will be set up at an initial investment of $30 million.

This will be scaled up to a total of $100 million over phases, Motorola India chairman Firdose Vandrevala said at a press conference here today.

Motorola signed an MoU with the Tamil Nadu government to set up this facility. Stu Reed, executive vice-president, integrated supply chain of Motorola Inc, and Tamil Nadu chief minister M. Karunanidhi inked the MoU.

The manufacturing facility will come up on the 300-acre Sriperumbudur hi-tech special economic zone (SEZ). Motorola, Foxconn and other vendors will be a part of this SEZ.

The first phase of the project will comprise 2,50,000 sq ft and will manufacture mobile handsets, network equipment, base stations and set top boxes.

Global mobile phone manufacturing giant Nokia has already started operations from Sriperumbudur.

Union communication and IT minister Dayanidhi Maran said Motorola will roll out sub-$30 phones from this facility, the first phase of which is expected to be operational by January 14,2007.

“Motorola was the first to come out with a sub-$40 phone. They will make sub-$30 phones from this facility,” said Maran.