Avalon Technologies Limited has announced the execution of a Joint Venture Agreement (JVA) with Zollner Elektronik AG, a prominent European electronics manufacturing services (EMS) company. The joint venture, to be named ‘Zollner Avalon Private Limited’ or similar, will establish an India-based manufacturing and services platform for printed circuit board assembly and related services. Initially, Zollner will hold a 51% stake, with Avalon holding 49%, and Avalon has an option to increase its stake later.
Avalon Technologies Enters Strategic Joint Venture
Avalon Technologies Limited has officially approved the formation of a significant joint venture with Zollner Elektronik AG, a leading European electronics manufacturing services (EMS) company. This collaboration aims to establish a robust, India-based manufacturing and services platform dedicated to the production of printed circuit board assemblies (PCBA), box-build solutions, system integration, testing, validation, and industrialization support.
Joint Venture Structure and Shareholding
The newly formed entity, which will operate under the name ‘Zollner Avalon Private Limited’ or a similar approved name, will initially be incorporated as a wholly-owned subsidiary of Avalon Technologies. Subsequently, Zollner Elektronik AG will subscribe to equity shares, acquiring a 51% stake in the joint venture company. Avalon Technologies will hold the remaining 49% stake. The agreement also includes a provision allowing Avalon to acquire an incremental 2% stake within two years of the company commencing commercial production, potentially bringing its total shareholding to 51%.
Strategic Objectives and Operations
The joint venture intends to leverage Avalon’s established Indian infrastructure with Zollner’s global EMS expertise to cater to domestic Indian markets, exports from India, and select multi-region customer programs. The partnership is set to enhance the company’s capabilities in the EMS sector, offering comprehensive solutions from sourcing and supply-chain coordination to logistics and after-sales services.
Board Approval and Next Steps
The Board of Directors of Avalon Technologies approved the execution of the Joint Venture Agreement (JVA) during a meeting held on September 03, 2026. The proposed transaction is contingent upon the receipt of requisite approvals, finalization of definitive documents, and fulfillment of all conditions stipulated in the JVA. The meeting commenced at 05:00 P.M. (IST) and concluded at 05:25 P.M. (IST).
Source: BSE
