Sanmina is a key player in the green energy space and offers technology solutions, smart meters and electric car chargers. Sanmina also does business in automotive electronics, oil and gas, defence and aerospace, medical equipment and devices and multimedia products amongst others.
Sanmina SCI India Private Ltd..(SIPL), Indian entity holding 49.9% equity stake, Sanmina Corporation, a leading integrated manufacturing solutions company, Reliance Strategic Business Ventures Limited (RSBVL) a wholly-owned subsidiary of Reliance Industries Ltd. (RIL) both have JointVenture agreement RSBVL holding a 50.1% equity stake by investing Rs 1,670 crore in new shares. In order to create an Electronic Manufacturing hub at Chennai, India with high technology infrastructure hardware, for growth markets, and across Communications Networking Industries (5G, Cloud infrastructure, Hyperscale Data Centers), Medical and Healthcare Systems, Cleantech, Defence and Aerospace, Manufacturing Technology Center of Excellence that serve as an incubation Center to support Product Development and Hardware Start-up Ecosystem in India, and will promote Research and innovation of leading edge technologies
Reliance’s investment will help its plans to become a Global player in selling 5G technology and telecom gear, taking on global players like Ericsson and Nokia. Sanmina has a plant in Chennai and it is among companies eligible for the Indian government’s Production Linked Incentive (PLI) scheme for telecom products and networks (where it will get incentives between 4%-6% on the production value).
Reliance’s requirement for telecom electronics and gear as the company lays out an All-India 5G network, the small investment in Himachal Futuristic Communications Limited(HFCL-The company serves various industries, such as telecommunications, security and railways, textiles, Cable fiber), which it already made, from whom it can buy Optic fiber as HFCL designing and making 5G radios amongst others- and is one of the domestic players eligible under the PLI scheme too.
Jure Sola, Chairman and CEO of Sanmina, said “This joint venture will serve both domestic and export markets and represents a major milestone in the Indian Government’s “Make in India” initiative.”
Akash Ambani, Director, Reliance Jio, said, “For both growth and security, it is essential for India to be more self-reliant in Electronics Manufacturing in Telecom, IT, Data Centers, Cloud, 5G, New energy and other industries as we chart our path in the new digital economy. Through this partnership we plan to boost innovation and talent in India, meeting both Indian and Global demand.”