"We should able to zero in on a partner be it Foxconn or any manufacturer by the end of third quarter of this calendar year and actually start delivering the phones by the end of the fourth quarter," Peter Chang, country manager at Asus India, said.

"We are looking to make 70 percent of our smartphones in India," Chang said.

"But we want to focus on the product and not on the manufacturing, so we have taken the decision of contract manufacturing." Asus had launched its ZenFone smartphones business in India 18 months ago and has sold nearly 1.6 million units.

"We  aim to capture at least 5 percent of the Indian smartphone market and be among the top four by the end of next year," Chang said.

Currently, Asus has around 2-percent share of the smartphone market in India. The handset-maker, which has 400 employees in India, is also looking at expanding its channel coverage. It has 120 exclusive stores in the country. Besides, it is also looking at research and development centres in India.

Asus, whose top markets continue to be Taiwan, India and Indonesia, also sells its smartphones in China, Malaysia, Vietnam, Turkey and the US.

"India had the biggest fan base till about a week back when Indonesia took over. But India is a big contributor and saw the biggest amount of participation in the development of the Zen user interface," the Asus executive said.