Mar 03, 2022 09:10 am
Sanmina Corporation with 40 years of advanced manufacturing experience and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL) have agreed upon a joint venture to create a world-class electronic manufacturing hub in India.
RSBVL will hold 50.1% equity stake in the joint venture entity and Sanmina will hold the remaining 49.9%, RIL announced in a regulatory filing on March 3. “RSBVL will achieve this ownership primarily through an investment of upto 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.”
Akash Ambani, Director, Reliance Jio, expressed his delight, “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.”
The joint venture will focus on creating state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will cater as an incubation center to support the product development and hardware start-up ecosystem in India