Chennai: Avalon Technologies has formed a joint venture (JV) with European electronics manufacturing services (EMS) company Zollner Elektronik AG for printed circuit board assembly (PCBA) box-build in India, the company informed in exchange filings on Thursday.Zollner will hold 51% and Avalon will hold 49% of the venture and will serve customers in sectors including healthcare and life sciences, rail and other industrial verticals. The partnership gives Zollner immediate access to India manufacturing capability for its global customers’ India operations, the company said. The joint venture will initially focus on serving the India operations of established customers but has plans to serve customers abroad.Avalon joins the list of EMS companies in India forming joint ventures with global players as the country’s electronics manufacturing focuses on key components including PCBs. Initially, the company will be set up as a wholly owned subsidiary of Avalon and Zollner will subsequently acquire a 51% stake. Avalon will have an option to acquire an additional 2% stake, the company said. “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 and global customer relationships. Together, we can provide global customers with a faster and more reliable path to manufacturing in India,” said Kunhamed Bicha, chairperson and managing director of Avalon Technologies.Beyond the joint venture, Avalon will also supply cable wiring and harness, magnetics, plastics, sheet metal and machining, expanding its participation across the value chain.
