Reliance Strategic Business Ventures Limited (RSBVL), a subsidiary that is fully owned by the Reliance Industries Limited (RIL) has signed an agreement with Sanmina Corporation to create a joint venture to create a world-class electronic manufacturing hub in India.
RSBVL will accommodate 50.1% of equity shares in a joint venture entity with Sanmina which has the remaining 49.9%, RIL said in the submission of regulations on 3. “RSBVL will achieve this ownership, especially through an investment of up to Rs 1,670 Crore in new shares in Sanmina. An existing Indian entity, while Sanmina will contribute the existing contract manufacturing business. As a result of investment, the joint venture will be capitalized with more than $ 200 million in cash to fund growth. ” Completion of transactions is subject to customary closure conditions, including regulatory approval, RIL said adding that, the transaction is expected to be closed no later than 2022 September.
Akash Ambani, Director, Reliance Jio, said, “We like to work with Sanmina to access significant market opportunities for high-tech manufacturing in India. For growth and security, it is important for India to be more independent in electronic manufacturing in telecommunications, that, data center , Cloud, 5G, new energy and other industries because we map new digital lines. Through this partnership we plan to improve innovation and talent in India, meeting Indian and global demand. “
Joint ventures will prioritize high-tech infrastructure hardware, for growth markets, and cross-industries such as communication networks (5G, cloud infrastructure, hyperscale data), medical systems and health care, industry and cleantech, and aerospace, telecommunication conglomeratics say in archiving.
In addition to supporting the current Sanmina customer base, a joint venture will create the latest superior technology center ‘which will function as a center for incubation to support product development and hardware start-up ecosystems in India, and promote the research and innovation of leading technology, official statements added Following the announcement, the RIL shares rose 0.32 percent to RS 2406 each at BSE, while benchmark Sensex rose 353.52 points or 0.64 percent at 55,822.42.
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