Reliance, Sanmina complete deal to set up electronics manufacturing joint venture


PTI, Oct 4, 2022, 2:07 PM IST

Representative Image (Source: Freepik)

New Delhi: Reliance Industries’ subsidiary RSBVL and US-based Sanmina Corporation have completed the deal to set up an electronics manufacturing joint venture at a total enterprise valuation of about Rs 3,300 crore.

Reliance Strategic Business Ventures Limited (RSBVL) will hold 50.1 percent equity stake in the joint venture while Sanmina will have 49.9 per cent shareholding.

RSBVL will achieve this ownership primarily through an investment of up to Rs 1,670 crore in new shares in Sanmina’s existing Indian entity. With the investment, the entity will become a joint venture and will be capitalised with over USD 200 million of cash to fund growth.

“Sanmina Corporation, a leading integrated manufacturing solutions company, and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, today announced they have completed the previously announced joint venture transaction,” a joint statement by the two companies said on Tuesday.

RSBVL had a revenue of Rs 1,478.1 crore (USD 194.9 million) and a net profit of Rs 179.8 crore for the year ended March 2022. It had a total investment of Rs 10,857.7 crore at the end of March 2022, the statement said.

The joint venture will leverage Sanmina’s 40 years of advanced manufacturing experience and Reliance’s expertise and leadership in the Indian business ecosystem. The day-to-day business will continue to be managed by Sanmina’s management team in Chennai.

“The joint venture will create a world-class electronic manufacturing hub in India. The joint venture will prioritise high technology infrastructure hardware, for growth markets, and across industries such as communications networking (5G, cloud infrastructure, hyperscale datacentres), medical and healthcare systems, industrial and cleantech, and defence and aerospace,” the statement said.

In addition to supporting Sanmina’s current customer base, the joint venture will create a ‘Manufacturing Technology Centre 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, 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, the statement said.

Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.

Top News

Indonesia’s Mt. Semeru eruption buries homes damages bridge

The metaverse offers challenges and possibilities for the future of the retail industry

Padubidri: Police rescue elderly man with dementia; reunite him with family

A taste of Rajasthan for G20 delegates

Shiralakoppa: Case registered after graffiti saying ‘Join CFI / PFI’ found painted on walls

Udupi: Cyber fraudsters fleece Rs 1 lakh in guise of part-time job

Chhattisgarh: Voting begins for byelection in Bhanupratappur


Related Articles More

UAE emerges second biggest tea importer from India after CIS bloc

Adani group’s NDTV open offer subscribed 32%; poised to be largest shareholder

RBI likely to moderate interest hike: Experts

Mcap of eight of top-10 most valued firms climb Rs 1.15 lakh cr; Reliance biggest winner

RBI’s rate decision, state poll results major factors to drive equity market: Analysts

MUST WATCH

Do you know what makes a beagle dog special?

How to become flipper

Bannur Sheep Breed Information | Uv

This rare jackfruit tree Sidddu Halasu

Oxygen Concentrator


Latest Additions

Indonesia’s Mt. Semeru eruption buries homes damages bridge

The metaverse offers challenges and possibilities for the future of the retail industry

Bengaluru: Search for man-eater leopard continues

Padubidri: Police rescue elderly man with dementia; reunite him with family

PM Modi, several chief ministers to attend all party-meeting on G20 summit

Thanks for visiting Udayavani

You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.