Reliance Strategic Business Ventures Limited (RSBVL), a wholly owned subsidiary of Reliance Industries Limited (RIL), has entered into an agreement with Sanmina Corporation.
RIL Pact With Sanmina: Reliance Strategic Business Ventures Limited (RSBVL), a wholly owned subsidiary of Reliance Industries Limited (RIL), has entered into an agreement with Sanmina Corporation. This agreement has been done to make India a world-class electronics manufacturing hub, under which both the companies will form a joint venture. Under this partnership, both companies will benefit from Sanmina’s 40 years of advanced manufacturing experience and Reliance’s expertise in the India ecosystem. The day-to-day business will continue to be managed by Sanmina’s existing management team in Chennai.
who will have how much stake
RSBVL will hold 50.1% equity stake in the JV, while the remaining 49.9% will be held by Sanmina. RSBVL will get this stake after investing Rs 1670 crore in the existing Indian unit of Sanmina. Whereas Sanmina will contribute to its existing contract manufacturing business. As a result of the investment, the joint venture will be capitalized on over $200 million for growth.
Important for growth and security
Akash Ambani, Director, Reliance Jio said, “We are delighted to work with Sanmina to reach the critical market opportunity for hi-tech manufacturing in India. For both growth and security, it is important for India to become more self-reliant in manufacturing electronics in telecom, IT, data center, cloud, 5G, new energy and other industries. Because we are leading our way in the new digital economy. Through this partnership, we are planning to promote innovation and talent in India while meeting the Indian and global demand.
Manufacturing Technology Center of Excellence
In addition to supporting Sanmina’s existing customer base, the JV will build a state-of-the-art ‘Manufacturing Technology Center of Excellence’. It will serve as an incubation center to support product development and hardware start-up ecosystem in India. Simultaneously, it will work to promote research and innovation of leading edge technology.
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