Reliance Strategic Business Ventures to form JV with Sanmina Corporation

10 Mar 2022 , 01:33 AM

The Nasdaq listed Sanmina Corporation Sanmina a leading integrated manufacturing solutions company and Reliance Strategic Business Ventures a wholly owned subsidiary of Reliance Industries announced that they have entered into an agreement to create a joint venture through an investment in Sanminas existing Indian entity Sanmina SCI India SIPL This partnership will leverage Sanminas 40 years of advanced manufacturing experience and Reliances expertise and leadership in the Indian business ecosystem The day-to-day business will continue to be managed by Sanminas existing management team in Chennai which will be seamless from an employee and customer perspective The joint venture will create a world-class electronic manufacturing hub in India in line with the Honble Prime Ministers Make in India vision The joint venture will prioritize high technology infrastructure hardware for growth markets and across industries such as communications networking 5G cloud infrastructure hyperscale datacenters medical and healthcare systems industrial and cleantech and defense and aerospace In addition to supporting Sanminas current customer base 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 RSBVL will hold 501Percentage equity stake in the joint venture entity with Sanmina owning the remaining 499Percentage RSBVL will achieve this ownership primarily through an investment of upto Rs 1670crore in new shares in Sanminas existing Indian entity while Sanmina will contribute its existing contract manufacturing business As a result of the investment the joint venture will be capitalized with over $200 million of cash to fund growth Revenues for SIPL were approximately Rs 123 billion or approximately US$165 million for the fiscal year ended March 31 2021 Through this joint venture Sanmina expects to significantly grow the scale of this business over time and expand its Indian manufacturing footprint to serve the local and global demand for Hi-Tech equipment across industries All the manufacturing will initially take place at Sanminas 100-acre campus in Chennai with the ability for site expansion to support future growth opportunities as well as to potentially expand to new manufacturing sites in India over time based on business needs Completion of the transaction is subject to customary closing conditions including regulatory approvals The transaction is expected to close no later than September 2022