Reliance, Sanmina Join Hands To Create Electronics Manufacturing Hub In India The joint venture will be in line with Make in India vision. The venture will prioritize high technology infrastructure hardware for growth markets, among others
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Sanmina Corporation, an integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL) have inked a pact to create a joint venture through an investment in Sanmina's existing Indian entity, SIPL (Sanmina SCI India Private Ltd).
The joint venture will create an electronic manufacturing hub in India, in line with Make in India vision. The venture will prioritize high technology infrastructure hardware for growth markets, medical and healthcare systems, industrial, cleantech, defense and aerospace, communications networking such as 5G, Cloud infrastructure and hyperscale data centers.
RSBVL will hold 50.1 per cent equity stake in the joint venture entity, primarily through an investment of up to INR 1,670 crore in new shares in Sanmina's existing Indian entity. Sanmina will own the remaining 49.9 per cent and will contribute to its existing contract manufacturing business, said a statement.
Besides supporting Sanmina's current customer base, the joint venture will create a state-of-the-art Manufacturing Technology Center of Excellence which will serve as an incubation center to support the product development and hardware startup ecosystem in India.
"We are excited to partner with Reliance to build the premier integrated manufacturing solutions company in India. This joint venture will service both domestic and export markets and represents a major milestone in the Make in India initiative," said Jure Sola, chairman and CEO of Sanmina.
"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," said Akash Ambani, director, Reliance Jio.
Completion of the transaction is subject to customary closing conditions, including regulatory approvals. The transaction is expected to close no later than September 2022, said a statement.
