India’s leading technology enterprise HFCL Limited is set to further expand the current capacity of its high-quality optical fiber manufacturing, from 10 million fiber km per annum to 33.90 million fiber km per annum. The capacity will be added in a phased manner, with the completion targeted by December 2024.

Jun 1, 2023

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

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The company earlier planned an expansion of 24.94 million fiber km. However, 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 INR 470 crore 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. The proposed expansion will not only strengthen supply chain capabilities but also improve overall margins of the company.