In a move to capture a slice of the rapidly growing domestic mobile phone market, public sector telecom equipment major ITI Ltd on Tuesday said it was contemplating manufacturing GSM cellular phones, besides WLL-CDMA instruments in the country.

Addressing shareholders at the company's 53rd annual general meeting in Bangalore, Y K Pandey, chairman and managing director, ITI, said the company had signed an agreement with ZTE of China for using the CDMA technology.

"Another MoU signed recently will similarly pave the way for manufacturing the GSM equipment," he added.

He said the viability of manufacturing GSM handsets was being currently assessed.

Besides rejuvenating ITI's production activity, Pandey said it would increase its value addition by way of equipment required for mobile services, thereby "augmenting the bottomline."

He said ITI had bagged orders worth Rs 242 crore (Rs 2.42 billion) for supply of CorDECT fixed wireless access system at two locations.

The manufacturing infrastructure was being upgraded to execute electronic manufacturing services, Pandey said, adding that an exclusive production line was being planned for export of electronic equipment "which should keep our revenue streams flowing."