Reliance Strategic Business Ventures, a wholly owned subsidiary of Reliance Industries, will own 50.1% of the joint venture
Mukesh Ambani-led Reliance Industries is looking to expand its empire to include electronics manufacturing as it mulls an investment of upto $221 million in electronics firm Sanmina.
As per the conglomerate plans, it is looking to set up a joint venture with the same. In a statement, the companies said that the joint venture aims to create a “world-class” electronic manufacturing hub in India.
Reliance Strategic Business Ventures, a wholly owned subsidiary of Reliance Industries, will own 50.1% of the joint venture.
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 over time based on business needs, they said.
The joint venture will prioritize high technology infrastructure hardware for growth markets and across industries such as communications networking (5G, cloud infrastructure, hyperscale datacenters), medical and healthcare systems, industrial and cleantech, and defense and aerospace.
The joint venture will also create a “Manufacturing Technology Center of Excellence” to support the product development and hardware startup ecosystem in India, among other things.
“We are delighted to work with Sanmina to access the significant market opportunity for high-tech manufacturing in India,” Akash Ambani, director of Reliance Jio, said in a statement.
“For both growth and security, it is essential for India to be more self-reliant in electronics manufacturing in Telecom, IT, Data Centers, Cloud, 5G, New Energy and other industries as we chart our path in the new digital economy. Through this partnership we plan to boost innovation and talent in India, meeting both Indian and global demand.”
India’s government is offering almost $7 billion of incentives to boost the electronics manufacturing sector.
