Lava has teamed up with Indian retail chain Croma to distribute the device across the country.

The move follows Intel's previous failed attempt to break into the smartphone market.

A tie-up with manufacturer LG in 2010 fell flat, with no models going into production.

Meanwhile, chips designed by British-based ARM and the American firm Qualcomm now dominate the market.

Details of Intel-powered smartphones made by Motorola Mobility and Lenovo are expected soon.

Hyper threading

The chip maker announced the partnerships at the Consumer Electronics Show in Barcelona in January.

Intel's tie-up with Motorola Mobility is seen as most significant as the company is in the process of being purchased by Google.

The Atom-based chip promises more efficient battery consumption, as well as Intel's own "hyper threading technology" allowing for enhanced multi-tasking.

The XOLO X900 - which features an 8-megapixel camera - will run initially on Android Gingerbread, Google's smartphone operating system.

This will later be upgraded, Intel said, to the next incarnation of Android, Ice Cream Sandwich.

Lava has emerged as one of India's fastest-growing companies since being founded two-and-a-half years ago.

"After our success in feature phones, with over 10 million happy customers in under three years, XOLO will be a differentiated player in the fast-growing smartphone segment," Lava's co-founder and director Vishal Sehgal said in a statement.