Reliance Strategic Business Ventures Limited (RSBVL), a wholly owned subsidiary of Reliance Industries Limited (RIL), has announced that it has entered into an agreement with Sanmina Corporation to form a joint venture for a world-class electronic manufacturing hub in India. This joint venture will create a world-class manufacturing hub in India, Reliance Industries mentioned in a statement. “It will prioritize high technology infrastructure hardware for growth markets and in industries such as communications networking (5G, cloud infrastructure, hyperscale datacenters), medical and health care systems.
industrial and cleantech, and defense and aerospace,” the company said.
According to regulatory filings, RSBVL will hold 50.1 per cent equity stake in the joint venture entity, while the remaining 49.9 per cent will be held by Sanmeena.
“The joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will act as an incubation center to promote research and innovation, along with supporting the product development and hardware start-up ecosystem in India. Leading- edge technologies,” the company said.
Akash Ambani, Director, Reliance Jio, said, “We are delighted to work with Sunmina to access a significant market opportunity for hi-tech manufacturing in India. Telecom, IT, Data for India, both for growth and security. It is essential to be more self-reliant in electronics manufacturing across the center, cloud, 5G, new energy and other industries as we lead our way into the new digital economy. Through this partnership we will be able to innovate in India while meeting Indian and global demand. And planning to promote talent.
Through this joint venture, Sanmina will significantly scale up this business over time and expand its Indian manufacturing footprint to service
Local and global demand for high-tech equipment across industries.
All construction will initially take place on Sanmina’s 100-acre campus in Chennai.
“RSBVL will acquire this ownership primarily through an investment of up to Rs 1,670 crore in new shares in the existing Indian arm of Sanmina, while Sanmina will contribute to its existing contract manufacturing business. As a result of the investment, the joint venture will be capitalized with over $200 million in cash for growth,” said Reliance Industries.
Reliance Industries said completion of the transaction is subject to customary closing conditions including regulatory approvals. The transaction is expected to close no later than September 2022.
“We are excited to partner with Reliance to create India’s leading integrated manufacturing solutions company,” said Jure Sola, President and CEO, Sunmina. Make in India initiative in Government of India.
This partnership will leverage Sanmina’s 40 years of advanced manufacturing experience and Reliance’s expertise and leadership in Indian
business ecosystem, the company said.
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