India's Reliance Strategic Business Ventures Limited (RSBVL) and US company Sanmina Corporation have entered into an agreement to create a joint venture through an investment in Sanmina's existing Indian entity.
Reliance Strategic Business Ventures Limited (RSBVL) is a wholly-owned subsidiary of Reliance Industries Limited (RIL), whose interests range from telecommunications and natural gas to retail and textiles. Sanmina Corporation is a leading integrated manufacturing solutions company.
The joint venture will, the partners say, create a world-class electronic manufacturing hub in India, in line with the government’s Make in India vision. The joint venture will prioritize 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 defense and aerospace.
In addition to supporting Sanmina's current customer base, the joint venture will create a state-of-the-art 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.
RSBVL will hold 50.1% equity stake in the joint venture entity with Sanmina owning the remaining 49.9%.
Through this joint venture, Sanmina expects to significantly grow the scale of this business over time and expand its Indian manufacturing footprint to serve local and global demand for hi-tech equipment across industries.
All the manufacturing will initially 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 based on business needs.