Reliance Industries, through its wholly owned subsidiary Reliance Strategic Business Ventures Ltd. (RSBVL), has inked an agreement with California-based Sanmina Corporation to form a Joint Venture for establishing a electronics manufacturing hub in India.
This JV has been formed by RSBVL’s investment of up to Rs. 1,670 crore in Sanmina’s existing Indian manufacturing entity, Sanmina SCI India Pvt Ltd (SIPL). Reliance will hold 50.1% stake in the JV with this investment, while the rest will be owned by Sanmina.
Sanmina will handle day-to-day business of the JV through its existing management in Chennai.
The JV will create hardware solutions for industries like 5G, cloud infrastructure, hyper scale data centres. It will also cater to medical and healthcare systems, and defence and aerospace segments. The entire manufacturing process will take place in Sanmina’s existing facility in Chennai, with the option of expanding to other locations as per business needs.
Other than manufacturing, the JV will also establish a ‘Manufacturing Technology Centre for Excellence’, which will be dedicated to product development and research.
The transaction is planned to be completed by September, 2022.