Reliance now gets into electronics manufacturing through a JV with Sanmina Corporation (SC), an American electronics manufacturing company.
Key points to note –
- Reliance through it’s wholly owned subsidiary, Reliance Strategic Business Ventures Limited (RSBVL) will own 50.1% in the JV and SC the balance 49.9%.
- For it’s share, RSBVL is investing Rs 1,670 crore. SC will contribute in the form of it’s existing Indian operations at Chennai.
- SC’s Indian revenues were around Rs 1,230 crore for the fiscal year ended March 31, 2021. Globally, SC is $2.5 bn (Rs 18,800 crore) market cap company with annual revenues of $6.7 bn (Rs 50,000 crore) and PAT of $280 mn (Rs 2,100 crore)
Prima facie, it seems like a good investment for Reliance.
My only concern continues to be – Reliance is getting into anything and everything. I hope it has the required management structure to manage all these varied businesses.