Picture Credit: Zollner Group
German electronics and mechatronics services company Zollner Elektronik AG has formed a strategic joint venture with India’s Avalon Technologies Limited to manufacture advanced electronic products in India.
The agreement, approved by Avalon’s board on September 3, 2026, will establish an India-based platform for printed circuit board assembly (PCBA), box-build manufacturing and system integration.
The venture will serve customers in India and other markets across healthcare and life sciences, testing and measurement, railways and additional industrial sectors.
Zollner to Hold Initial Majority Stake
Under the agreed ownership structure, Zollner will initially hold a 51% stake in the joint venture, while Avalon will own the remaining 49%.
Beginning three years after commercial production starts, Avalon will have the option—subject to specified conditions—to acquire an additional 2% stake. Exercising this option would increase Avalon’s ownership to 51%, making it the majority shareholder.
The arrangement allows Zollner to lead the venture during its initial operations while providing Avalon with a pathway to assume majority ownership as the business develops.
Financial details, the proposed investment and a timeline for commencing production have not been disclosed.
Manufacturing and Localisation in India
The joint venture will initially manufacture products for the Indian operations of established international customers. It is expected to offer these companies greater access to local production infrastructure and help them align their manufacturing and supply chains with requirements in the Indian market.
Avalon will also supply the venture through its existing capabilities in cable wiring and harnesses, magnetics, plastics, sheet metal and machining.
The partnership combines Avalon’s Indian manufacturing facilities, domestic supply-chain relationships and more than 25 years of experience in the electronics manufacturing services sector with Zollner’s engineering capabilities and international customer network.
Zollner, founded in Germany in 1965, operates across the electronics product lifecycle, including research and development, manufacturing, supply-chain management and after-sales services. The family-owned company has more than 12,500 employees across 26 locations worldwide.
New Industrial Segments for Avalon
The venture will help Avalon expand into healthcare and life sciences as well as testing and measurement—two relatively new areas for the Indian company. It will also strengthen its capabilities in high-mix and technically complex electronics manufacturing.
Markus Aschenbrenner, Member of the Managing Board of Zollner Elektronik AG, described India as an increasingly important technology market and part of the global strategies of the company’s customers. He said the partnership would combine Avalon’s local presence with Zollner’s technological capabilities and more than six decades of experience.
Avalon Technologies Chairman and Managing Director Kunhamed Bicha said the venture would widen the company’s access to international customers, open new industrial segments and support more complex manufacturing in India.
The partnership reflects the expanding India–Germany industrial relationship beyond traditional engineering and automotive sectors. By connecting German engineering and customer networks with Indian production capabilities, the venture adds an electronics-manufacturing dimension to bilateral cooperation and the wider shift towards more localised and diversified global supply chains.
