Reliance Industries, through its subsidiary Reliance Strategic Business Ventures Limited (RSBVL), had, early this year, announced that it was investing Rs 1670 crore ($221 million) to create a joint venture with the US manufacturing company Sanmina Corp for making electronic products in Chennai. Today the two companies announced that the they have completed the JV transaction.
This partnership is meant to leverage Sanmina’s 40 years of advanced manufacturing experience and Reliance’s expertise and leadership in the Indian business ecosystem. The manufacturing hub will make, among others, hardware for 5G communications, cloud infrastructure, healthcare systems, and defence and aerospace. The day-to-day business will continue to be managed by Sanmina’s management team in Chennai, which will be seamless from an employee and customer perspective.
Reliance will hold 50.1% equity stake in the joint venture entity with Sanmina owning the remaining 49.9%. As a result of the investment, the joint venture will be capitalized with over $200 million of cash to fund growth.
Incubation centre for product development
The joint venture is to create a world-class electronic manufacturing hub in India, in line with the government's 'Make in India' vision. The joint venture will prioritize high technology infrastructure hardware, for growth markets, and across industries.
In addition to supporting Sanmina’s current customer base, the joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation centre to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies.
All the manufacturing will take place at Sanmina’s 100-acre campus in Chennai, with the ability for site expansion to support future growth opportunities as well as to potentially expand to new manufacturing sites in India. Sanmina Corporation is a manufacturing solutions provider in Electronics Manufacturing Services (EMS) market.
- Amazon Great Indian Festival 2022: Best deals and offers
