Reliance Strategic Business Ventures Limited (RSBVL), a wholly owned subsidiary of Reliance Industries Limited (RIL), has joined hands with Sanmina Corporation (Sanmina Corporation) to form a joint venture to build a world-class electronic manufacturing hub in India. Sanmina Corporation).
Under this agreement, RSBVL will hold 50.1% equity stake in the joint venture unit, with Sanmina holding the remaining 49.9%, RIL said in a regulatory filing dated March 3. RSBVL will invest Rs 1,670 crore in shares of Sanmina’s existing India unit to acquire this stake while Sanmina will contribute to its existing contract manufacturing business.
These transactions will be subject to customary closing conditions and regulatory approvals. RIL said these transactions are expected to be completed by September 2022.
Akash Ambani, Director, Reliance Jio, Reliance Jio said, “We are delighted to partner with Sanmina to reach a critical market for hi-tech manufacturing in India. India in both growth and security. It is necessary to become more self-reliant in electronics manufacturing in telecom, IT, data center, cloud, 5G, new energy and other industries as we move towards the new digital economy. Through this partnership we are able to meet Indian and global demand. While planning to promote innovation and talent in India.
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The oil-to-telecom conglomerate, which operates from oil to telecommunications, said in the filing that these joint ventures will serve growth markets for communications networking (5G, cloud infrastructure, hyperscale datacenters), medical and health systems, industrial and cleantech and defense. and will prioritize high technology infrastructure hardware in industries such as aerospace.
In addition to supporting Sanmina’s existing customer base, the joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ to support the product development and hardware start-up ecosystem in India, an official statement said. Will serve as an incubation center. In addition, it will promote research and innovation of leading-edge technologies.
After the announcement of this deal, RIL’s stock rose 0.32 per cent to Rs 2406 per share on the BSE, while the benchmark Sensex was trading 353.52 points or 0.64 per cent higher at 55,822.42.
(Disclaimer: Network 18 Media & Investment Ltd. is owned by Independent Media Trust. Its beneficiary company is Reliance Industries.)
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