New Delhi, Nasdaq-listed integrated manufacturing solutions company Sanmina Corporation and Reliance Strategic Business Ventures, a wholly-owned subsidiary of Reliance Industries have entered into an agreement to create a joint venture through an investment in Sanmina's existing Indian entity named Sanmina SCI India.

Sanmina Corporation is a leading integrated manufacturing solutions provider serving the fastest growing segments of the global electronics manufacturing services (EMS) market.

This partnership intends to leverage Sanmina's 40 years of manufacturing experience and Reliance's expertise and leadership in the Indian business ecosystem, a statement said.

"The day-to-day business will continue to be managed by Sanmina's existing management team in Chennai, which will be seamless from an employee and customer perspective."

The joint venture is expected to create a world-class electronic manufacturing hub in India, in line with the country "Make in India" vision, the statement said, adding it will prioritize high technology infrastructure hardware, for growth markets, and across industries such as communications networking (5G, cloud infrastructure, hyperscale data centers), medical and healthcare systems, industrial and cleantech, and defense and aerospace.

In addition to supporting Sanmina's current customer base, the joint venture will create a state-of-the-art 'Manufacturing Technology Center of Excellence' that will serve as an incubation center to support the product development and hardware start-up ecosystem in India, as well as to promote research and innovation of leading-edge technologies.

"All the manufacturing will initially take place at Sanmina's 100-acre campus in Chennai, with the ability for site expansion to support future growth opportunities as well as to potentially expand to new manufacturing sites in India over time based on business needs."

In the said joint venture, Reliance's subsidiary will hold 50.1 per cent equity stake with Sanmina owning the remaining 49.9 per cent.

"This joint venture will service both domestic and export markets and represents a major milestone in the Indian government's 'Make in India' initiative," said Jure Sola, Chairman and Chief Executive Officer of Sanmina.

Though the completion of the transaction is subject to customary closing conditions, including regulatory approvals, it is expected to close by September 2022.

Akash Ambani, Director of 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."