Reliance ties up with Sanmina for electronics manufacturing in India

A Reliance unit will invest 16.7 billion rupees ($220.86 million) in new shares of Sanmina’s existing Indian entity, giving it a 50.1% stake in the joint venture


Reliance Industries | US companies | Electronics

Reuters  | 

Reliance Industries, RIL

Photo: Shutterstock

Indian conglomerate Reliance Industries said on Thursday it would invest 16.7 billion rupees ($220.70 million) to create a joint venture (JV) with U.S.-listed Sanmina Corp for making electronic products in the Asian country.

The JV aims to make hardware for 5G communications, cloud infrastructure, healthcare systems, and defense and aerospace, Reliance said in a regulatory filing.

Billionaire Mukesh Ambani’s Reliance will hold a 50.1% stake in the JV after the investment in Sanmina’s existing Indian entity through a Reliance unit. Sanmina will contribute its existing contract manufacturing business to the JV.

All manufacturing will initially take place at Sanmina’s campus in the south Indian city of Chennai, with an option for expansion in other manufacturing sites within the country.

Reliance shares were up as much as 0.7% after the deal.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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First Published: Thu, March 03 2022. 09:29 IST