Zollner enters India with Avalon JV, to invest ₹1,000 crore in TN unit

The companies will set up a Rs 1,000 crore manufacturing unit for high-precision items like printed circuit board assemblies (PCBAs), complete box builds, cable harnesses and electronic sub-assemblies at Kanchipuram in Tamil Nadu. Under the terms of the arrangement, Zollner will initially hold 51 per cent and Avalon will hold 49 per cent of the JV.

This is crucial for India's EMS ecosystem in bringing more European technology, as well as investors who are customers of Zollner. An initial deal for the investment was signed between the government of Tamil Nadu and Avalon at the recent Vettri Tamil Nadu Investors’ Conclave 2026.

"There are only a few European EMS companies with a presence in India. The entry of Zollner is significant for the country and Tamil Nadu as it is probably the largest player in Europe. The government and Guidance were in talks with Avalon for some time, the announcement is a huge success for the growing electronic ecosystem in Tamil Nadu," said Deepak Jacob, managing director and chief executive of Guidance, the state industry development body.

The JV will serve customers across geographies in sectors including health care and life sciences, test and measurement, rail and other industrial verticals. The partnership will become Zollner's Indian manufacturing platform for its global customers and may immediately eye a large base of customers in the Oragadam area.

At present, the presence of European EMS players in India is limited, with UK-based TT Electronics operating in Haryana and Norway's Kitron through its Chennai unit.

"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. We see the JV as a long-term commitment and look forward to developing the business together," said Markus Aschenbrenner, member of the managing board, Zollner Elektronik AG.

Beginning three years after the start of commercial production at the JV's manufacturing facility, Avalon will have an option, subject to certain conditions, to acquire an additional 2 per cent stake, taking its shareholding to 51 per cent and making it the majority shareholder in the JV. This structure lets Zollner lead the JV's early operations, drawing on its manufacturing and engineering experience, while giving Avalon a clear route to increase its ownership as the business matures.

“This JV is strategically significant for Avalon. It expands our access to customers, opens new verticals and advances our capabilities in highly complex manufacturing. Just as importantly, it is fully consistent with the strategy that has built Avalon: high-mix, high-complexity products, long product lifecycles, trusted customer relationships and disciplined, profitable growth," said Kunhamed Bicha, Chairman and Managing Director, Avalon Technologies.

The JV brings together 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 (from R&D through production and after-sales service) built over more than six decades of serving strategic, high-reliability industries. The partners intend 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.

Beyond its role as an equity partner, Avalon will also supply the JV across several of its core capabilities — cable wiring and harness, magnetics, plastics, sheet metal and machining — expanding Avalon’s participation across the value chain and creating an additional recurring revenue opportunity as the venture scales.