The sister concern of Reliance Industries Limited (RIL), Reliance Strategic Business Ventures Limited (RSBVL) has joined hands with Sanmina Corporation to establish a state-of-the-art hub for manufacturing electronics in India.
On March 3rd RIL revealed during the regulatory filing that RSBVL will take up 50.1% equity and the rest 49.9% will be Sanmina’s share in the joint venture. RSBVL agreed to pay for the equity Rs 1,670 crore in the latest shares of the existing Sanmina’s establishment in India; Sanmina shall share its existing manufacturing business contract. Once the investment goes through the joint venture will be maximized with close to $200 million in cash for fund growth.
The transaction will realize no later than September 2022 and has initial closing conditions which include approvals stated RIL. As soon as the joint venture was announced, the shares of RIL rose to 0.32% to Rs 2406 per share on the Bombay Stock Exchange, and Sensex increased to 353.52 0r 0.64% at 55,822.42.
Reliance Jio Director, Akash Ambani mentioned that they were looking forward to the joint venture with Sanmina Corporation to enter the market of advanced manufacturing in the country. India has to establish its growth and security via increasing its electronics manufacturing in IT, Telecom, Data Centres, New Energy, CLoud, 5G and other avenues as we tread towards the advanced digital economy. He plans to increase talent in India by boosting innovation in both domestic and international platforms.
