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HFCL Plans to Further Expand Optic Fiber Capacity

In Business
June 02, 2023

HFCL Limited, India’s leading technology enterprise offering communication network solutions for Telcos, Railways, and Defence sectors has announced the expansion of its current capacity of its high-quality optical fiber manufacturing from 10 million fiber km/per annum to 33.90 million fiber km/per annum instead of 24.94 million fiber km as planned earlier. This is in continuation to its earlier expansion plans announced for its existing state-of-the-art manufacturing facility at Hyderabad, India.

HFCL is witnessing strong market demand for Optical Fiber Cable and this strategic initiative aims to achieve the dual objectives of margin accretion and insulation from sourcing vagaries. The company has earmarked an estimated capex of ~ ₹470 Crores and will be using debt and internal accruals as the mode of financing. The capacity will be added in a phased manner, with the completion targeted by December 2024.

The decision to further enhance capacity expansion will further lead to operational synergy and help capitalize on the growing market demand for optical fiber cables (OFC). As a technology-driven, HFCL has a strong focus on the development of innovative and futuristic technological products in order to meet customer needs effectively. The proposed expansion will not only strengthen supply chain capabilities but also improve overall margins of the Company.