The company specializing in the manufacturing of telecommunication equipment, and optical fiber cables had earlier invested INR 260 crore in its Hyderabad plant.
December 17, 2020
HFCL (Himachal Futuristic Communications Ltd.) rose by 3.56% and has hit a 52-week high to be valued at Rs 24.75 after the company announced that it has started commercial production of Fiber-to-the-home (FTTH) cables from the new facility in Hyderabad.
The company asserted that its new FTTH cable manufacturing unit at Hyderabad has commenced commercial production of optical fiber cables for fiber to home applications from 16 December 2020. With this development, the company, along with its subsidiary company, HTL, has become the largest manufacturer of FTTH cables in India with a capacity of 6 lakh kms per annum.
The company had earlier invested Rs 260 crore in Hyderabad plant for the manufacturing of optical fiber that was commissioned in January 2020. This new automated high-speed FTTH cable facility has come up with a fresh outlay of Rs 40 crore to ensure high throughput, economies of scale and highest quality standards. Till now, Rs 300 crore has been deployed in Hyderabad facility as part of the company’s expansion road map.
The FTTH cable plant has backward integration for supplies of major raw materials like optical fiber and ARP rods from the firm’s existing manufacturing facilities, further strengthening the supply chain. Along with supplying FTTH cables to telecom service providers in India, HFCL will also be exporting them to more than 30 countries where the company is already having its presence. It will be marketing the FTTH cables under its brand name. The company’s R&D facilities are developing different variants of new cables which will also be manufactured from the newly set up facility at Hyderabad.