Reliance Industries, Sanmina complete manufacturing JV transaction in India; stock gains ~1%

4 Oct 2022 , 10:14 AM

Sanmina Corporation (Sanmina) a leading integrated manufacturing solutions company and Reliance Strategic Business Ventures Limited (RSBVL), Reliance Industries Limited’s (RIL) wholly-owned subsidiary, announced that they have successfully completed the previously announced joint venture transaction.

Sanmina’s 40 years of sophisticated manufacturing experience would be combined with Reliance’s expertise and strength in the Indian business environment. The day-to-day operations will continue to be overseen by Sanmina’s management team in Chennai, ensuring employee and customer continuity.

In keeping with the Hon’ble Prime Minister’s “Make in India” vision, the joint venture would establish a world-class electronic manufacturing cluster in India.

The collaboration will target high-tech infrastructure gear for growing markets and industries such as communications networking (5G, cloud infrastructure, hyper scale datacenters), medical and healthcare systems, industrial and cleantech, and defense and aerospace, said the company on Tuesday.

In addition to supporting Sanmina’s current customer base, the joint venture will establish a cutting-edge ‘Manufacturing Technology Center of Excellence,’ which will serve as an incubation centre for India’s product development and hardware start-up ecosystem, as well as promote research and innovation of cutting-edge technologies.

The company further highlighted that all manufacturing will take place on Sanmina’s 100-acre campus in Chennai, with the option of expanding to meet future development prospects and perhaps expanding to additional manufacturing sites in India over time, depending on business demands.

Reliance Industries was trading at Rs2,399 per piece, up by 1.04% from its previous closing of Rs2,374.30 on the BSE. The scrip opened at Rs2,398.45 and touched intraday high and low of Rs2,407.05 and Rs2,390.35 respectively.

For feedback and suggestions, write to us at [e-mail]