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Last Updated: Wednesday, 7 June 2006, 17:05 GMT 18:05 UK
Motorola to invest $100m in India
Motorola Razr phone
Motorola hopes to have the Indian factory operational by 2007
Mobile phone maker Motorola has announced plans to build a $100m (53.8m) factory in India.

The US firm said work would shortly begin on the plant, near the southern Indian city of Madras (Chennai).

The move, by the world's second-biggest handset maker, follows plans by larger rival Nokia to build a $150m manufacturing site in the country.

Mobile phone use is growing rapidly in India, where about 100 million people currently own a phone handset.

"India is a vitally important market for Motorola," said Motorola's executive vice president Ron Garriques.

The company said it planned to have the Indian factory operational by next year.

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