Key Details

  • The Board of Directors of Avalon Technologies Limited approved the execution of the Joint Venture Agreement with Zollner Elektronik AG at its meeting held on September 03, 2026.
  • Zollner Elektronik AG is described as a leading European electronics manufacturing services (EMS) company.

Joint Venture Structure and Terms

  • Initial shareholding: Zollner will hold 51% and Avalon will hold 49% of the joint venture.
  • Option provision: Beginning three years after the start of commercial production at the JV's manufacturing facility, Avalon will have an option to acquire an additional 2% stake, subject to certain conditions.
  • Post-option exercise: If exercised, Avalon's shareholding would increase to 51%, making it the majority shareholder.

Business Operations and Focus

  • The JV will manufacture Printed Circuit Board Assemblies (PCBA), box-build and system integration products in India.
  • Initial focus: Serving the India operations of established customers.
  • Target sectors: Health Care & Life Sciences, Test & Measurement, Rail and other Industrial verticals.

Additional Business Arrangements

  • Beyond equity participation, Avalon will supply the JV across several of its core capabilities including cable wiring and harness, magnetics, plastics, sheet metal and machining.
  • This supply arrangement expands Avalon's participation across the value chain and creates an additional recurring revenue opportunity.

Strategic Rationale

For Customers

  • Provides India-based manufacturing with localization support and closer proximity to their India operations.

For Zollner

  • Provides immediate access to India manufacturing capability for global customers' India operations.
  • Leverages Avalon's established manufacturing base and over 25 years of experience in Indian EMS industry.
  • Avoids multi-year lead time typically required to build local supply chain from scratch.

For Avalon

  • Expands access to global customers and provides entry into healthcare & life sciences and test & measurement verticals (new for Avalon).
  • Advances capabilities in highly complex manufacturing while preserving focus on high-mix, high-complexity products.
  • Maintains focus on long lifecycle products and long-term customer relationships.

Leadership Commentary

Markus Aschenbrenner, Member of the Managing Board, Zollner Elektronik AG: "India is a highly dynamic market, both as a growing technology ecosystem and as an important part of our customers' global strategies. With the Zollner Avalon JV, we are combining Avalon's strong local presence and expertise with Zollner's global capabilities, technological know-how and more than 60 years of experience in EMS."

Kunhamed Bicha, Chairman and Managing Director, Avalon Technologies Limited: "This JV is strategically significant for Avalon. It expands our access to customers, opens new verticals and advances our capabilities in highly complex manufacturing. Zollner brings more than six decades of engineering expertise, global customer relationships and full product lifecycle capabilities."

Safe Harbour Statement

The document contains forward-looking statements regarding market opportunity and business prospects that involve risks and uncertainties. The company excludes liability for the contents and omissions, and undertakes no obligation to update forward-looking statements except as required by law.