Reliance Industries said on Thursday it plans to invest 16.7 billion rupees ($220.7 million) to create a joint venture (JV) with US-listed Sanmina to make electronic products.
The JV will make hardware for 5G communications, cloud infrastructure, healthcare systems, and defence and aerospace, Reliance said in a regulatory filing.
Billionaire Mukesh Ambani’s Reliance will hold a 50.1% stake in the venture after the investment in Sanmina’s existing Indian entity through Reliance Strategic Business Ventures.
Sanmina will contribute its existing contract manufacturing business to the JV.
All manufacturing will initially take place at Sanmina’s facilities in the south Indian city of Chennai, with an option for expansion in other manufacturing sites within the country.
The joint venture will also set up an incubation centre to support the product development and hardware start-up ecosystem in India.
Reliance shares were up as much as 0.7% after the deal.
- Jim Pollard
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