RIL arm, Sanmina Corp complete joint venture deal
Oct 04, 2022
New Delhi [India], October 4 : Manufacturing solutions company Nasdaq-listed Sanmina Corporation (Sanmina) and Reliance Strategic Business Ventures (RSBVL) in a joint statement said on Tuesday that they completed the previously announced joint venture transaction.
Sanmina and RSBVL, a wholly-owned subsidiary of Reliance Industries, had in March inked an agreement to create a joint venture through investment in Sanmina's existing Indian entity (Sanmina SCI India).
The JV, which will focus on manufacturing fourth-generation mobile system (4G) and 5G hardware, will serve both domestic and export markets. The statement said that the partnership would leverage Sanmina's 40 years of advanced manufacturing experience and Reliance's expertise and leadership in the Indian business ecosystem.
The day-to-day business will continue to be managed by Sanmina's management team in Chennai, which will be seamless from an employee and customer perspective.
The joint statement also said the joint venture would create a world-class electronic manufacturing hub in India, in line with the "Make in India" mission.
It also said the JV would prioritise high technology infrastructure hardware, for growth markets, and across industries such as communications networking (5G, cloud infrastructure, hyperscale data centres), medical and health care systems, industrial and clean tech, and defence and aerospace. The statement also said while supporting Sanmina's current customer base, the JV will create latest 'manufacturing technology centre of excellence' that will serve as an incubation centre to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies.
RSBVL's principal activities are trading goods, holding strategic investment interests in businesses, and providing business support services.
On August 2, the Competition Commission of India (CCI) on Tuesday granted its approval for the acquisition of a 50.1 per cent stake of Sanmina-SCI India (SCIPL) by Reliance Strategic Business Ventures (RSBVL). RSBVL was set to invest Rs1,670 crore in the JV and hold the majority stake.
