Reliance Strategic Business Ventures, Sanmina complete JV

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Reliance Strategic Business Ventures, Sanmina complete JV

Mukesh Ambani- led Reliance Industries subsidiary Reliance Strategic Business Ventures Limited RSBVL and US-based integrated manufacturing solutions company Sanmina Corporation completed their previously announced joint venture. As per this partnership, RSBVL will leverage its expertise and leadership in India's business ecosystem, while Sanmina's management team in Chennai will manage day-to- day business.

The JV aims to create a world-class manufacturing hub in India with a focus on high technology infrastructure hardware for growth markets and include defence and aerospace, industrial and cleantech, communications networking 5 G, cloud infrastructure, hyperscale data centers and medical and healthcare systems.

Manufacturing will take place at Sanmina's 100 acre campus in Chennai with a focus on expanding to new manufacturing sites in India based on business needs. A Manufacturing Technology Center of Excellence is an incubator that will support product development and hardware start-ups in the country and promote research and innovation.

RIL stated that RSBVL will be able to achieve this ownership through an investment of upto Rs 1,670 crore in new shares in Sanmina's existing Indian entity, while Sanmina will contribute its existing contract manufacturing business. Sanmina will have the remaining 49.9 per cent stake in the JV, while RSBVL has a 50.1 per cent equity stake. The joint venture has $200 million of cash in its possession to fund growth. Reliance Jio director Akash Ambani said on the JV, that they plan to boost innovation and talent in India through this partnership, as well as meet Indian and global demand.