Reliance Strategic Business Ventures Limited (RSBVL) and US-based Sanmina Corporation have completed the previously announced manufacturing joint venture transaction, the company said in a release on Tuesday (4 October).
Earlier in March, RSBVL, a wholly-owned subsidiary of Reliance Industries Limited, has said that it will invest Rs 1,670 crore to create an electronics manufacturing joint venture with Sanmina.
This joint venture will prioritise high technology infrastructure hardware such as communications networking (5G, cloud infrastructure, hyper-scale data centers), medical and healthcare systems, industrial and cleantech, and defense and aerospace.
The JV will create a "world-class electronic manufacturing hub in India", in line with Prime Minister Narendra Modi's "Make in India" vision, the company said in a statement.
The day-to-day business of the JV will continue to be managed by Sanmina’s management team in Chennai, which will be seamless from an employee and customer perspective.
In addition to supporting Sanmina’s current customer base, the joint venture will create a state-of-the-art ‘Manufacturing Technology Center of Excellence’ that will serve as an incubation center to support the product development and hardware start-up ecosystem in India, as well as promote research and innovation of leading-edge technologies, the company said.
"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," it added.