$200M to be invested by Reliance in Sanmina JV in order to manufacture Electronics Hardware in India
- ByStartupStory | March 3, 2022
On Thursday, an integrated manufacturing solutions company, Sanmina Corporation (Sanmina), and a wholly-owned subsidiary of Reliance Industries Limited (RIL), Reliance Strategic Business Ventures Limited (RSBVL), announced about their entry into an agreement so as to create a joint venture through an investment in Sanmina’s existing Indian entity (Sanmina SCI India Private Ltd, SIPL). Sanmina’s existing management team in Chennai, will be managing the day-to-day business continuously, which will be seamless from an employee and customer perspective, states a release.
An official statement states that the joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’, in addition to supporting Sanmina’s current customer base, will be serving as an incubation center in order to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies.
With Sanmina owning the about 49.9 percent, RSBVL also decided to hold 50.1 percent equity stake in the joint venture entity. Primarily through an investment of up to Rs 1,670 crore in new shares in Sanmina’s existing Indian entity, RSBVL will be achieving this ownership too, while its existing contract manufacturing business will be contributed by Sanmina.
“Revenues for SIPL were approximately Rs 12.3 billion (or approximately $165 million) for the fiscal year ended March 31, 2021. Through this joint venture, Sanmina expects to significantly grow the scale of this business over time and expand its Indian manufacturing footprint to serve the local and global demand for Hi-Tech equipment across industries.” said Akash Ambani, Director, Reliance Jio.
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