Sanmina Corporation and Reliance Strategic Business Ventures Ltd (RSBVL), have completed the formation of the joint venture to set up a manufacturing hub in Chennai.
RSBVL will hold a 50.1 per cent equity stake in the joint venture entity, primarily through an investment of up to ₹1,670 crore in new shares in Sanmina’s existing Indian entity. Sanmina will own the remaining 49.9 per cent. As a result of the investment, the joint venture will be capitalised with over $200 million of cash to fund growth.
The day-to-day business will continue to be managed by Sanmina’s 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 “Make in India” vision. The joint venture will prioritise 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,” said a press statement.
In addition to supporting Sanmina’s current customer base, the joint venture will create a ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation centre to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies.
All the manufacturing will take place at Sanmina’s 100-acre campus in Chennai