Reliance ties up with Sanmina for electronics manufacturing in India (updated)
03/03/2022 04:00
(Adds details on deal)
BENGALURU, March 3 (Reuters) - Indian conglomerate Reliance
Industries RELI.NS 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 SANM.O 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 https://www.bseindia.com/xml-data/corpfiling/AttachLive/2ee9f47c-b58e-4741-bf12-e7988ab0a44b.pdf.
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.
($1 = 75.6700 Indian rupees)
(Reporting by Chris Thomas in Bengaluru; Editing by Anil
D'Silva)
((chris.thomas@thomsonreuters.com; +91-80-6749-8695;))