- All the manufacturing will initially take place at Sanmina’s 100-acre campus in Chennai.
- Caters to growing demand for high technology infrastructure hardware in India as well as addresses export opportunities
NE BUSINESS BUREAU
SAN JOSE, CA, MUMBAI, MARCH 4
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 create a joint venture for a world-class electronic manufacturing hub in India. This joint venture with an investment of Rs 1,670 crore will create a world-class manufacturing hub in India, a statement by Reliance Industries mentioned.
“It will prioritize high technology infrastructure hardware, for growth markets, and across industries such as communications networking (5G, cloud infrastructure, hyperscale datacenters), medical and healthcare systems, industrial and cleantech, and defense and aerospace,” the company added.
RSBVL will hold 50.1 percent equity stake in the joint venture entity while Sanmina will own the remaining 49.9 percent, the statement added.
“The joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation center to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies,” the company added.
Akash Ambani, Director, Reliance Jio, said, “We are delighted to work with Sanmina to access the significant market opportunity for high-tech manufacturing in India. For both growth and security, it is essential for India to be more self-reliant in electronics manufacturing in Telecom, IT, Data Centers, Cloud, 5G, New Energy and other industries as we chart our path in the new digital economy. Through this partnership we plan to boost innovation and talent in India, meeting both Indian and global demand.”
Through this joint venture, Sanmina will significantly grow the scale of this business over time and expand its Indian manufacturing footprint to serve the local and global demand for hi-tech equipment across industries.
All the manufacturing will initially take place at Sanmina’s 100-acre campus in Chennai.
“RSBVL will achieve this ownership primarily through an investment of up to Rs 1,670 crore in new shares in Sanmina’s existing Indian entity, while Sanmina will contribute its existing contract manufacturing business. As a result of the investment, the joint venture will be capitalized with over $200 million of cash to fund growth,” Reliance Industries said.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals, Reliance Industries said. The transaction is expected to close no later than September 2022.
“We are excited to partner with Reliance to build the premier integrated manufacturing solutions company in India,” stated Jure Sola, chairman and chief executive officer of Sanmina, added, “This joint venture will service both domestic and export markets and represents a major milestone in the Indian governments Make in India initiative.”
This partnership will leverage Sanmina’s 40 years of advanced manufacturing experience and Reliance’s expertise and leadership in the Indian business ecosystem, the company said.
