Reliance Industries Limited (RIL) subsidiary, Reliance Strategic Business Ventures Limited (RSBVL), has invested INR 20 Cr in electronics manufacturer Neolync Solutions Private Limited (Neolync).
The conglomerate said the investment is aimed at boosting manufacturing of 5G devices in India. “”The aforesaid investment is part of group’s overall 5G initiatives and commitment to Government of India’s ‘Made in India’ initiatives for fostering indigenous manufacturing especially in next gen 5G technologies,” RIL said in a regulatory filing with the Bombay Stock Exchange.
A further investment of up to INR 40 Cr, subject to Neolync achieving certain milestones, is expected to be completed by March 2023. The total investment will translate into 40% of equity share capital in Neolync on a fully paid up and diluted basis.
Incorporated in 2019, Neolync manufactures electronic products in India, including mobile phones, telecom products, computing devices, and industrial machinery. The unlisted private company has Anekar Noorullah Javeed Ahmed, Reuven Shaibel, Thobias Claimans and Kanakadri as directors.
Neolync is an early stage company with an income of INR 3.26 Cr. It reported a net loss of INR 1.03 Cr for FY2021 and net loss of INR 2.39 Cr for October 2019 to March 2020.
Last year, Neolync was one of the 16 companies appointed by the IT ministry under the PLI (production-linked incentive) scheme for large scale electronics manufacturing in the country.
Besides mobile manufacturing giants such as Samsung, Foxconn Hon Hai, Rising Star, Wistron and Pegatron, Neolync was among the domestic electronics companies approved under the mobile phone segment. Along with it were companies such as Lava, Micromax, Padget Electronics, and Optiemus Electronics.
Additionally, Neolync was also approved under the Specified Electronic Components segment, along with five other companies namely AT&S, Ascent Circuits, Visicon, Walsin, and Sahasra.
It remains to be seen whether Neolync ties into Reliance’s plans to launch the 5G-powered JioPhone Next smartphone later this year. Reliance is developing the affordable 5G smartphone along with Google, as announced during the company’s annual general meeting earlier this year.
RIL’s digital services umbrella company Reliance Jio Platforms will use Google Cloud’s technologies to power Jio’s 5G solutions as well as key Reliance businesses such as Reliance Retail, JioMart, JioSaavn and JioHealth.