After investing over ?900 crore and placing a $1billion order for 5G robots in past couple of months, Reliance has taken another step towards diversifying its portfolio.
Yesterday, Reliance Industries said it would invest ?16.7 billion ($220.70 million) to create a joint venture (JV) with the U.S.-listed electronics manufacturing firm Sanmina Corp, as per Reuters.
Indian billionaire Mukesh Ambani's Reliance Industries will hold a 50.1% stake in the joint venture after the investment in Sanmina's existing Indian entity through a Reliance unit. Whereas the US listed company Sanmina will contribute its existing contract manufacturing business to the joint venture.
The JV will service both domestic and export markets, Sanmina¡¯s CEO Jure Sola said in a statement, as per Reuters report.
All manufacturing will initially take place at Sanmina's 100-acre campus in Chennai, with an option to also expand in other manufacturing sites in India, as per a report in Mint.?The deal's transaction is expected to close by September 2022.
Through this deal, Sanmina, whose Indian entity Sanmina SCI India Private Ltd had reportedly earned a revenue of about ?12.3 billion for the FY ended March 31, 2021, looks set to scale up its existing footprint in India.
This deal aims to make electronic products in India, which will include hardware for 5G communications, cloud infrastructure, healthcare systems, clean technology, and defense and aerospace, as per what Reliance said in a regulatory filing.
In recent years, Reliance has diversified away from its mainstay oil business, building its presence in the retail and telecom industries as well. It had also unveiled an aggressive plan to foray into green energy last year, as per Reuters report.
In a joint statement yesterday, the companies said "The joint venture will create a world-class electronic manufacturing hub in India, in line with the Hon¡¯ble Prime Minister's ¡°Make in India" vision," as per a report in Mint.
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