BENGALURU (Reuters) -Indian conglomerate Reliance Industries 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 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)
Source : Reuters