RIL’s subsidiary, Sanmina Corp forms JV to boost electronics manufacturing in India

The joint venture will focus on industries such as medical and health systems, industrial and cleantech, and defense and aerospace in addition to high technology infrastructure hardware, growth markets, and communications networking such as 5G, cloud infrastructure, hyperscale datacenters.

The joint venture has been created through an investment in Sanmina’s existing Indian arm, Sanmina SCI India Private Limited, or SIPL, and the day-to-day business will continue to be managed by Sanmina’s existing management team in Chennai.

RSBVL will hold 50.1% equity stake in the joint venture unit, while the remaining 49.9% will be owned by Sanmina. RSBVL will acquire this ownership mainly through investment of up to 1,670 crore in new shares in Sunmina’s existing Indian arm, while Sanmina will contribute to its existing contract manufacturing business, the companies said in a statement.

As a result of the investment, the joint venture will be capitalized with over $200 million in cash for growth.

The joint venture will create a world-class electronic manufacturing hub in India in line with the “Make in India” vision of the Hon’ble Prime Minister, the companies said in a joint statement on Thursday.

The joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation center to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies. -Edge technologies.

The revenue for SIPL was approx. 12.3 billion for the fiscal year ended March 31, 2021. Through this joint venture, Sanmina expects to significantly increase the scale of this business over time and expand its Indian manufacturing footprint to meet the local and global demand for hi-tech equipment across industries.

All construction will initially take place on Sanmina’s 100-acre campus in Chennai, with the potential to support future growth opportunities as well as expand to new manufacturing sites in India over time based on business needs.

Jure Sola, President and CEO, Sunmina, said, “We are excited to partner with Reliance to create the leading integrated manufacturing solutions company in India. This joint venture will serve both domestic and export markets and is a leader in the region. The major milestone will represent the Government of India’s “Make in India” initiative.”

Akash Ambani, Director, Reliance Jio said, “We are delighted to partner with Sunmina to access a significant market opportunity for hi-tech manufacturing in India. Telecom, IT, Data Center for India, both for growth and security. Being more self-reliant in manufacturing electronics in cloud, 5G, new energy and other industries is essential as we navigate our way into the new digital economy.”

The transaction is expected to close by September 2022.