I want to create the android OS container which shall run on native Ubuntu 16.04 LTS. Some reference or guidelines will be helpful to achieve this
What expectations do you have of this Android container? Show Android GUI?
LXC/LXD are not VM, meaning you would need the container to run the same architecture as the host, i.e. Android-x86 would be suitable. Also, you would need to have Android output the GUI on a X11 server.
Having said that, have a look at the Halium project, which I think they already use LXC https://halium.org/ They have a Telegram channel where you can ask for details.