Reliance Strategic Business Ventures Limited (RSBVL), the largest private sector firm in India and a leading provider of integrated manufacturing solutions, and Sanmina Corporation today announced that the joint venture transaction that was announced back in March has been finalized. The total enterprise valuation of the deal is about Rs. 3,300 crore.
RSBVL will hold a 50.1% equity stake in the joint venture entity, with Sanmina owning the remaining 49.9%. RSBVL will invest up to Rs 1,670 crore in new shares in Sanmina’s existing Indian entity initially, while Sanmina will contribute its existing contract manufacturing business.
Joint Venture Supports “Make in India” initiative for State-of-the-Art Electronics Hardware
Through this agreement, Sanmina’s 40 years of experience in sophisticated manufacturing will be combined with Reliance‘s knowledge of and leadership in the Indian business environment.
The management team at Sanmina will continue to run the day-to-day operations, which will be smooth for both customers and employees.
- In line with the “Make in India” goal of the Hon’ble Prime Minister, the joint venture would create a world-class cluster of electronic manufacturing in India.
- The collaboration will focus on high-tech infrastructure equipment for growing markets and industries, such as 5G telecommunications networking, cloud infrastructure, and hyperscale datacenters, healthcare and medical systems, industrial as well as cleantech, and military and aerospace.
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.
Also, all manufacturing will take place on Sanmina’s 100-acre campus in Chennai. Depending on business needs, Sanmina may be able to expand to make room for future growth or move production to other places in India over time.