Tag Heuer, known for expensive watches, will soon be associated with luxury mobile phones that will be launched in India in April.

In terms of price, Tag Heuer mobile phones will be positioned at the top end of the market and cost about Rs 2,21,000.

Switzerland-based Louis Vuitton Moet Hennessy group, which owns the brand, has decided to launch the phones in India at the same time as their global launch.

"It will be a very high-end luxury mobile phone and will be available at a starting price of �3500 (around Rs 2,21,717)," Marcus Stadelmann, LVMH Watch & Jewellery president for South East Asia, told Business Standard.

With the launch of Tag Heuer phones, LVMH, which also owns upmarket brands Fendi and Christian Dior, will come head to head against Nokia, whose Vertu lords it over the high-end luxury mobile handset market.

However, Tag Heuer phones will be priced lower than Vertu, whose cheapest model comes for �5,000 (Rs 3,15,997).

In India, the Tag Heuer mobile handsets will be available at Tag Heuer boutiques and select multi-brand retail outlets across Mumbai, New Delhi, Bangalore, Chennai, Ahemdabad and Kolkata.

"Such brand extensions are an obvious step in leveraging the equity of a brand... Going by the response Tag Heuer watches have received, we are evaluating more brand extensions," said Manishi Sanwal, general manger, LVMH Watch & Jewellery India.

According to Stadelmann, the phone will have all the basic functions of a high-end phone and will be high on quality and looks. After assessing the response, the company will look at introducing more models.

LVMH plans to increase the number of Tag Heuer boutiques from 12 to 30 by 2010. The company has entered into a franchisee agreement for Tag Heuer stores in UB Group's UB City Mall and DLF's Emporio Mall.

LVMH is also poised to introduce its third watch brand, Zenith, in India for which government clearance has come.

Tag Heuer and Christian Dior are already here.

The company has lined up an initial investment of Rs 50 crore to market Zenith in the country.

It will be positioned a rung above the premium positioning of Christian Dior.

"Any new brand takes four or five years to establish itself. Zenith may cut into our profits initially but we are positive that after the brand is established it will bring us good business," Samwal said.