Reliance Industries subsidiary RSBVL and US-based Sanmina Corporation have concluded a contract to establish an electronics manufacturing joint venture worth around Rs 3,300 crore. Reliance Strategic Business Ventures Limited (RSBVL) will own 50.1 percent of the joint venture, while Sanmina will own 49.9 percent.
This ownership will be obtained principally by an investment of up to Rs 1,670 crore in new shares in Sanmina’s existing Indian subsidiary by RSBVL. The firm will become a joint venture with the investment and will be capitalized with over USD 200 million in cash to fuel growth. “Sanmina Corporation, a leading integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, today announced the previously announced joint venture transaction,” the two companies said in a joint statement on Tuesday.
RSBVL will achieve this shareholding primarily by an investment of up to Rs 1,670 crore in new shares in Sanmina’s current Indian subsidiary. With the investment, the company will become a joint venture, with over USD 200 million in cash to fuel expansion. Sanmina Corporation, a leading integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, announced the previously announced joint venture transaction on Tuesday.
“The joint venture will establish India as a world-class electronic manufacturing hub.” According to the statement, “the joint venture will prioritise high technology infrastructure hardware for growth markets and across industries such as communications networking (5G, cloud infrastructure, hyperscale datacenters), medical and healthcare systems, industrial and cleantech, and defence and aerospace.”
