Muristek
New Delhi, March 3
Reliance Industries' subsidiary RSBVL and Sanmina Corporation on Thursday announced setting up of an electronic manufacturing joint venture in India that will focus on hi-tech infrastructure hardware across diverse sectors, including communications networking, defence and aerospace.
Reliance Strategic Business Ventures Limited (RSBVL) will hold 50.1% equity stake in the joint venture while Sanmina will have 49.9% shareholding.
Reliance arm to pump in Rs1,670 cr
Reliance Strategic Business Ventures Limited will pump Rs1,670 crore in the joint venture and hold 50.1% stake while Sanmina will have 49.9%shareholding
RSBVL will achieve this ownership primarily through an investment of up to Rs 1,670 crore in new shares in Sanmina's existing Indian entity, according to a statement. With the investment, the joint venture will be capitalised with over $200 million of cash to fund growth.
The transaction, which is subject to regulatory approvals, is expected to close by September 2022. "Sanmina Corporation, a leading integrated manufacturing solutions company and Reliance Strategic Business Ventures Limited (RSBVL)... today announced that they have entered into an agreement to create a joint venture through an investment in Sanmina's existing Indian entity (Sanmina SCI India Private Ltd, SIPL)," the statement said. —