The European EMS giant, Zollner Elektronik AG (Zollner), has announced the creation of a joint venture (JV) with Avalon Technologies Ltd (Avalon). This move is intended to stimulate the electronics manufacturing ecosystem in Tamil Nadu and India.
The companies plan to build a manufacturing facility in Kanchipuram, Tamil Nadu, where a production complex worth 100 billion rupees will be established. This facility will produce high-precision products such as Printed Circuit Board Assemblies (PCBA), complete enclosures, cable harnesses, and electronic subassemblies.
Under the terms of the partnership, Zollner will initially hold a 51 percent stake in the JV, while Avalon will hold 49 percent. This collaboration is significant for the Indian EMS ecosystem as it brings more European technology and investors who are clients of Zollner.
The initial investment agreement was signed between the Tamil Nadu government and Avalon during the recent Tamil Nadu Investors’ Conclave 2026. Dipak Jacob, Managing Director and CEO of Guidance, the state's industrial development agency, noted the significance of Zollner's entry, calling it likely the largest player among European EMS companies in the country.
The joint venture will serve clients across various regions in sectors such as healthcare and life sciences, testing and measurement, railway transport, and other industrial fields. It will become an Indian manufacturing platform for Zollner's global customers and may immediately target a large client base in the Oragadam area.
Currently, the presence of European EMS players in India is limited; TT Electronics from the UK operates in Haryana, and Ktron from Norway functions through its Chennai division.
Marcus Ashenbrenner, a member of the board of directors of Zollner Elektronik AG, emphasized the dynamism of the Indian market as a growing technological ecosystem and an important part of global customer strategies. He stated that the Zollner and Avalon partnership combines Avalon's strong local presence and experience with Zollner's global capabilities, technological expertise, and over 60 years of EMS experience, viewing the JV as a long-term commitment.
Three years after the commencement of commercial production at the JV's manufacturing facility, Avalon will have an option to acquire an additional 2 percent of shares subject to certain conditions, increasing its stake to 51 percent and making it the majority shareholder. This structure allows Zollner to lead the early operations of the JV, leveraging its manufacturing and engineering expertise, while providing Avalon a clear path to increased ownership as the business develops.
Kunkhamed Bicha, Chairman and Managing Director of Avalon Technologies, considers the JV strategically important for Avalon as it expands access to customers, opens new verticals, and develops capabilities in highly complex manufacturing. He also noted that this aligns perfectly with Avalon's strategy based on high mixed-model and complexity products, long product lifecycles, trusted customer relationships, and disciplined profitable growth.
The JV combines Avalon's manufacturing capacity, supply chain relationships, and operational footprint in India with Zollner's engineering expertise, international customer relations, and full product lifecycle capabilities (from R&D to after-sales service), accumulated over more than six decades working with strategic industries requiring high reliability. The partners intend to leverage these complementary strengths to create a differentiated manufacturing platform in India, accelerate scaling, and assist global customers in building more resilient and diversified supply chains.
In addition to its role as a equity partner, Avalon will supply the JV with several of its core capabilities—wiring and cable harnesses, magnetism, plastics, sheet metal, and machining—thereby expanding Avalon's involvement in the value chain and creating an additional opportunity for recurring revenue as the enterprise grows.