Reliance Industries subsidiary Reliance Strategic Business Ventures Limited (RSBVL) and US-based Sanmina Corporation have completed a deal to establish an electronics manufacturing joint venture worth around Rs 3,300 crore.

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RSBVL will own 50.1% of the joint venture, while Sanmina will own 49.9%. This ownership would be obtained principally by an investment of up to Rs 1,670 crore in new shares in Sanmina’s existing Indian subsidiary by RSBVL. The firm will become a joint venture with the investment and will be capitalised with approximately USD 200 million in cash to fuel expansion.

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“Sanmina Corporation, a leading integrated manufacturing solutions company and Reliance Strategic Business Ventures Limited (RSBVL), a wholly-owned subsidiary of Reliance Industries Limited (RIL), India’s largest private sector company, today announced they have completed the previously announced joint venture transaction,” a joint statement by the two companies said on Tuesday.

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RSBVL reported revenue of Rs 1,478.1 crore and a net profit of Rs 179.8 crore for the fiscal year that ended in March 2022. According to the announcement, it had a total investment of Rs 10,857.7 crore at the end of March 2022.

“The joint venture will create a world-class electronic manufacturing hub in India. The joint venture will prioritise high technology infrastructure hardware, for growth markets, and across industries such as communications networking (5G, cloud infrastructure, hyper-scale datacentres), medical and healthcare systems, industrial and cleantech, and defence and aerospace,” the statement said.

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In addition to assisting Sanmina’s current customer base, the joint venture will establish a ‘Manufacturing Technology Centre of Excellence,’ which will serve as an incubation centre to support India’s product development and hardware start-up ecosystem, as well as promote research and innovation of cutting-edge technologies.

According to the statement, all manufacturing will take place within Sanmina’s 100-acre campus in Chennai, with the option to expand to accommodate future development prospects as well as potentially extend to additional manufacturing sites in India over time, dependent on business needs.