[ad_1]
By Malvika Gurung
Investing.com — The oil-to-telecom conglomerate Reliance Industries (NS:) announced on Thursday, of entering into a joint venture with the California-headquartered electronics manufacturing services provider Sanmina Corporation, (NASDAQ:) for creating electronic devices and manufacturing hubs in India.
RIL subsidiary Reliance Strategic Business Ventures Limited (RSBVL) will be working with Sanmina Corp’s Indian arm in Chennai, through the development.
In this joint venture, RSBVL will hold a 50.1% stake and Sanmina Corp, a 49.9% shareholding.
The Reliance subsidiary will also make an investment of about Rs 1,670 crore in the JV, which will be capitalised with over $200 million of cash to fund growth, stated RIL in a regulatory filing.
Through the partnership, the two companies will make high technology hardware devices for growth markets and across industries like cloud infrastructure, 5G, medical and healthcare systems, and defence and aerospace, among others.
This move would unlock a significant market opportunity for high-tech manufacturing in India.
Sanmina’s management team in Chennai will look over the JV’s day-to-day business, and the transaction is expected to complete before September 2022.
Additionally, the two companies will also build a state-of-the-art incubation centre for product development, among other things.
[ad_2]
Source link
