Reliance Industries, through its subsidiary Reliance Strategic Business Ventures Limited (RSBVL), announced earlier this year that it was investing Rs 1,670 crore (US$221 million) to create a joint venture with American company Sanmina Corp to manufacture electronic products. in Chenai. Today, the two companies announced that they have completed the JV transaction.
This partnership aims to leverage Sanmina’s 40 years of advanced manufacturing experience and Reliance’s expertise and leadership in the Indian business ecosystem. The manufacturing center will manufacture, among others, hardware for 5G communications, cloud infrastructure, healthcare and defense systems, and aerospace. Day-to-day business will continue to be handled by Sanmina’s management team in Chennai, which will be seamless from an employee and customer perspective.
Reliance will hold a 50.1% equity interest in the joint venture, with Sanmina owning the remaining 49.9%. As a result of the investment, the joint venture will be capitalized with more than $200 million in cash to fund growth.
Incubation center for product development
The joint venture is to create a world-class electronics manufacturing hub in India, in line with the government’s ‘Make in India’ vision. The joint venture will prioritize high-tech infrastructure hardware, for growth markets and across all industries.
In addition to supporting Sanmina’s current customer base, the joint venture will create a state-of-the-art “Center of Excellence in Manufacturing Technology” that will serve as an incubation center to support the product development and hardware startup ecosystem in India. , as well as promoting research and innovation in cutting-edge technologies.
All manufacturing will take place on Sanmina’s 100-acre campus in Chennai, with site expansion capability to support future growth opportunities, as well as to potentially expand into new manufacturing locations in India. Sanmina Corporation is a provider of manufacturing solutions in the Electronics Manufacturing Services (EMS) market.