Avalon Technologies forms JV with Zollner Elektronik AG for advanced electronics manufacturing
Avalon Technologies and Zollner Elektronik AG have formed a joint venture for advanced electronics manufacturing in India. The JV will initially be 51% owned by Zollner and 49% by Avalon, with an option for Avalon to increase its stake to 51%. It will focus on PCBA, box-build, and system integration for sectors like healthcare and industrial.
The joint venture is strategic and aims to significantly enhance Avalon's manufacturing capabilities, market access, and revenue streams by partnering with an established international player.
The formation of a joint venture with a leading European EMS company is a positive development that expands Avalon's capabilities, customer access, and market reach.
Avalon Technologies Limited (Avalon) announced today that its Board of Directors has approved the execution of a Joint Venture Agreement (JVA) with Zollner Elektronik AG (Zollner), a leading European electronics manufacturing services (EMS) company. This strategic partnership aims to establish a joint venture for PCBA, box-build, and system integration manufacturing in India.
The joint venture will serve customers across various geographies and sectors, including Health Care & Life Sciences, Test & Measurement, Rail, and other Industrial verticals. Initially, Zollner will hold a 51% stake, while Avalon will hold 49%. However, Avalon has an option to acquire an additional 2% stake after three years of commercial production, making it the majority shareholder.
This JV combines Avalon's established manufacturing capabilities, supply chain relationships, and operating footprint in India with Zollner's engineering expertise, international customer relationships, and full product lifecycle capabilities. The partnership intends to leverage these complementary strengths to create a differentiated manufacturing platform in India, accelerate scale, and help global customers build more resilient and diversified supply chains. Avalon will also supply the JV with its core capabilities, including cable wiring and harness, magnetics, plastics, sheet metal, and machining, expanding its participation across the value chain and creating recurring revenue opportunities.
Markus Aschenbrenner, Member of the Managing Board at Zollner Elektronik AG, stated that the JV combines Avalon's strong local presence with Zollner's global capabilities and technological know-how, viewing it as a long-term commitment. Kunhamed Bicha, Chairman and Managing Director of Avalon Technologies Limited, highlighted the JV's strategic significance in expanding customer access, opening new verticals, and advancing capabilities in complex manufacturing, aligning with Avalon's strategy of high-mix, high-complexity products and long product lifecycles.
A plain-language summary of a public exchange filing by Avalon Technologies Limited. Read the original for the full detail.