Mukesh Ambani-led RIL’s subsidiary RSBVL, Sanmina announce completion of JV

Mukesh Ambani-led Reliance Industries’ subsidiary Reliance Strategic Business Ventures Limited (RSBVL) and US-based integrated manufacturing solutions company Sanmina Corporation completed their previously announced joint venture. As per this partnership, RSBVL will leverage its expertise and leadership in India’s business ecosystem whereas Sanmina’s management team in Chennai will manage the day-to-day business.

The JV is aimed at creating a world-class manufacturing hub in India with a focus on high technology infrastructure hardware for growth markets and across industries like defence and aerospace, industrial and cleantech, communications networking (5G, cloud infrastructure, hyperscale data centers) and medical and healthcare systems.

Manufacturing will take place in Sanmina’s 100-acre campus in Chennai with a focus to potentially expand to new manufacturing sites in India based on business needs. The joint venture will also focus on creating a ‘Manufacturing Technology Center of Excellence’, an incubation center to support product development and hardware start-up ecosystem in the country and promote research and innovation.

For the unversed, both the entities – RSBVL and Sanmina– had announced the JV via RIL’s investment in Sanmina’s Indian entity – Sanmina SCI India Private (SIPL)-- in March this year.

RIL stated, “RSBVL will achieve this ownership primarily through an investment of upto Rs 1,670 crore in new shares in Sanmina’s existing Indian entity, while Sanmina will contribute its existing contract manufacturing business.”

While RSBVL has a 50.1 per cent equity stake, Sanmina will have the remaining 49.9 per cent stake in the JV. The joint venture has been capitalised with around $200 million of cash to fund growth. “Through this partnership, we plan to boost innovation and talent in India, meeting both Indian and global demand,” Reliance Jio director Akash Ambani said on the JV.

Also read: RIL subsidiary, Sanmina enter JV to boost manufacturing in India