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NEW DELHI – Dixon Technologies is reportedly in talks to acquire a majority stake in Transsion Holdings' Indian unit as it looks to strengthen its presence in India's smartphone market.

Transsion, a Chinese handset maker, has operations in several emerging markets, including a manufacturing capacity of 25–30 million units across its three Noida-based plants, the Economic Times reported. If the acquisition is made, Dixon would gain access to Transsion's established network in India and gain a foothold in the country's smartphone market.

The Indian government has placed increased scrutiny on Chinese companies operating in the country's mobile phone industry, and wants domestic companies to have more sway over the industry as part of an informal mandate, ET reported.

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