German EMS firm Zollner enters India via Tamil Nadu joint venture

Zollner, a major European EMS player, has formalized its India expansion through the formation of a joint venture with Avalon, with the German firm holding a 51 per cent stake in the partnership. The venture will establish a new manufacturing facility in Kanchipuram, Tamil Nadu, to produce high-precision electronics components for various industrial applications.

The ₹1,000 crore investment commitment underscores Zollner's confidence in India's growing manufacturing sector and its strategic importance as a production hub for electronics. The facility in Kanchipuram, located in the outskirts of Chennai, positions the venture to tap into Tamil Nadu's established electronics ecosystem and skilled workforce.

The joint venture structure allows Zollner to leverage its global expertise in electronics manufacturing alongside Avalon's local market knowledge and operational experience. This partnership model has become increasingly common among international manufacturers seeking to establish or expand their presence in India.

The facility is expected to cater to both domestic and export markets, contributing to India's broader electronics manufacturing ambitions. With the government's push to boost domestic semiconductor and electronics production through various incentive schemes, such ventures represent significant foreign direct investment in the sector.