Avalon Technologies Limited has approved the execution of a Joint Venture Agreement with Zollner Elektronik AG, a European EMS company. The JV, named “Zollner Avalon Private Limited,” will establish a long-term India-based manufacturing platform for PCBA and system integration. Initially, Zollner will hold a 51% stake, with Avalon holding 49%, and Avalon may later acquire an incremental 2% stake. Additionally, the board approved the appointment of Mr. CG Balaji as an Additional Director and the re-appointments of key leadership roles.
Avalon Technologies Partners with Zollner Elektronik AG for New Manufacturing Venture
Avalon Technologies Limited announced today the execution of a Joint Venture Agreement (JVA) with Zollner Elektronik AG, a prominent European electronics manufacturing services (EMS) provider. This strategic alliance aims to establish a robust, long-term manufacturing and services platform based in India. The new entity, tentatively named “Zollner Avalon Private Limited”, will focus on Printed Circuit Board Assembly (PCBA), box-build, system integration, testing, validation, and related after-sales services. Manufacturing operations will be centred in India, serving domestic markets, exports, and select global customer programs where India is part of the manufacturing footprint.
Initial Shareholding and Future Options
Under the terms of the JVA, the new joint venture company will initially be incorporated as a wholly owned subsidiary of Avalon. Subsequently, Zollner Elektronik AG will subscribe to equity shares, acquiring a 51% stake. Avalon Technologies will hold the remaining 49% stake. The agreement also includes a provision allowing Avalon to elect to acquire an additional 2% stake within two years of the company commencing commercial production, which would bring Avalon’s shareholding to 51%.
Corporate Governance and Leadership Appointments
In addition to the joint venture, the Board of Directors approved the appointment of Mr. CG Balaji as an Additional Director in the Independent Category for a term of 5 consecutive years, subject to shareholder approval. The Board also approved the re-appointment of Mr. Kunhamed Bicha as Chairman & Managing Director for a further period of 5 years, effective July 12, 2027. Furthermore, Mr. Venkataramani Anantharamakrishnan and Mr. Byas Unnikrishnan Nambisan were re-appointed as Independent Directors for their second terms of 5 consecutive years, effective July 07, 2027 and July 19, 2027, respectively. These appointments are also subject to shareholder approval.
Incorporation of Wholly Owned Subsidiary
The Board also approved the incorporation of a wholly owned subsidiary, possibly named “Zollner Avalon Private Limited”, with an authorized share capital of INR 2,00,000, divided into 20,000 equity shares of INR 10 each. This subsidiary will be the vehicle through which the joint venture agreement will be executed. The initial incorporation will see Avalon hold 100% of the shares, with Zollner subscribing to its 51% stake post-incorporation, subject to stipulated conditions.
Source: BSE
