Dixon Technologies is in initial talks to buy a majority stake in the local phone making unit of China’s Transsion Holdings. Transsion’s India business is valued at about Rs 700 crore.

As an Indian company eyeing the stake buy in a Chinese handset brand, it would help in scaling up and ultimately reaching production-linked incentive (PLI) targets in an accelerated time frame under the scheme. Also, the scale factor is viewed as favourable for the company to attract new clients and enter related electronic categories. Besides, the government's move for a bigger Indian role in the mobile phone ecosystem is aimed at boosting local companies, and in the case of a joint venture, the Indian entity will have a stake of at least 51 percent.

Transsion Holdings, which makes smartphones and feature phones for its brands Techno, Infinix and Itel, has a capacity of 25-30 million units at its three manufacturing units in Noida. Dixon makes smartphones and feature phones for brands such as Xiaomi, and Jio among others. It has a production capacity of 30 million smartphones and 50 million feature phones at its four plants in Noida, Uttar Pradesh.