Avalon Technologies Limited and Zollner Elektronik AG have announced the formation of a joint venture to undertake printed circuit board assembly (PCBA), box-build and system integration manufacturing in India. The partnership brings together Avalon’s established manufacturing infrastructure and supply chain capabilities in India with Zollner’s engineering expertise, global customer relationships and product lifecycle capabilities. The joint venture will serve customers across sectors including healthcare and life sciences, test and measurement, rail and other industrial applications.
Under the proposed structure, Zollner will initially hold a 51% stake in the joint venture, while Avalon will hold 49%. Three years after commercial production begins at the joint venture’s manufacturing facility, Avalon will have the option, subject to agreed conditions, to acquire an additional 2% stake. This would increase Avalon’s holding to 51% and make it the majority shareholder.
The arrangement allows Zollner to lead the initial operations while leveraging Avalon’s established manufacturing base and local supply chain. It also provides Avalon with a defined pathway to increase its ownership as the business develops. The joint venture will initially focus on serving the India operations of established customers. Avalon will also provide the venture with capabilities across cable wiring and harnesses, magnetics, plastics, sheet metal and machining. This will expand the company’s participation across the electronics manufacturing value chain while creating an additional revenue opportunity as the venture scales.
For customers, the partnership is expected to provide India-based manufacturing, stronger localization support and closer access to production capabilities. For Zollner, the joint venture provides immediate access to Indian manufacturing infrastructure for global customers operating in the country.
Markus Aschenbrenner, Member of the Managing Board, Zollner Elektronik AG, said India is becoming an important technology and manufacturing market and that the partnership combines Avalon’s local presence with Zollner’s global capabilities and more than six decades of EMS experience.
Kunhamed Bicha, Chairman and Managing Director, Avalon Technologies Limited, said the partnership would expand Avalon’s customer access, introduce new industry verticals and strengthen its capabilities in high-complexity manufacturing while remaining aligned with its focus on high-mix products, long product lifecycles and long-term customer relationships.
Avalon has more than 25 years of experience in the Indian electronics manufacturing services industry. The company provides capabilities spanning PCB design and assembly, box-build manufacturing and electronic system integration, with operations in India and the US. Its customer base covers sectors including clean energy, transportation, industrials, communications and medical devices.
Zollner Elektronik AG was established in 1965 and has grown into a global electronics manufacturing services provider with more than 12,500 employees across 26 locations. The company provides services covering research and development, engineering, production, traceability, supply chain management and after-sales support.
