Avalon Technologies Limited has announced the formation of a strategic joint venture with European EMS leader Zollner Elektronik AG. This collaboration aims to enhance advanced electronics manufacturing capabilities in India, focusing on PCBA, box-build, and system integration. The JV will leverage both companies’ strengths to serve global customers, potentially expanding Avalon’s market access and product offerings.
Strategic Joint Venture Established
Avalon Technologies Limited (“Avalon”) and Zollner Elektronik AG (“Zollner”) have officially formed a joint venture (JV) to bolster advanced electronics manufacturing services within India. This strategic partnership was approved by Avalon’s Board of Directors on September 03, 2026, with the execution of the Joint Venture Agreement (“JVA”) following shortly thereafter.
Enhanced Manufacturing Capabilities
The JV is designed to expand Avalon’s access to global customers and introduce new industry verticals, building upon its existing high-complexity manufacturing expertise. The partnership will focus on manufacturing Printed Circuit Board Assemblies (PCBA), box-build, and system integration products. Key sectors targeted include Health Care & Life Sciences, Test & Measurement, and Rail, among other industrial verticals.
Ownership Structure and Growth Potential
Under the terms of the agreement, Zollner will initially hold a 51% stake in the JV, while Avalon will hold 49%. Significantly, Avalon has an option to acquire an additional 2% stake three years after commercial production begins, increasing its shareholding to 51% and making it the majority shareholder. This structure allows Zollner to lead early operations while providing Avalon a clear path to increased ownership as the business matures.
Synergistic Strengths
This venture integrates Avalon’s established Indian manufacturing infrastructure, supply chain relationships, and operational footprint with Zollner’s extensive engineering expertise, global customer base, and comprehensive product lifecycle capabilities. The partners aim to create a differentiated manufacturing platform in India, accelerating scale and assisting global customers in building more resilient supply chains. For Zollner, this provides immediate access to Indian manufacturing capabilities for its global clients’ operations in India.
Source: BSE
