HFCL Limited, a technology enterprise specialising in communication network solutions for Telcos, Railways, and Defence sectors, has announced the expansion of its high-quality optical fiber manufacturing capacity. The company plans to increase its annual production from 10 million fiber km to 33.90 million fiber km, surpassing the previously planned expansion of 24.94 million fiber km. This expansion is part of HFCL’s ongoing efforts to meet the strong market demand for Optical Fiber Cable (OFC) and enhance its operational capabilities.
This is in continuation to its earlier expansion plans announced for its existing state-of-the-art manufacturing facility at Hyderabad, India. By increasing its capacity, HFCL aims to achieve two key objectives: margin accretion and insulation from sourcing vagaries. The estimated capital expenditure for this expansion is approximately ₹470 Crores, which will be financed through a combination of debt and internal accruals modes of financing. The capacity addition will be implemented in phases, with a target completion date of December 2024.
By enhancing its manufacturing capacity, HFCL expects to capitalise on the growing market demand for optical fiber cables. The company, known for its technology-driven approach, prioritises the development of innovative and futuristic products. The proposed expansion will not only strengthens HFCL’s supply chain capabilities but will also enhances overall profit margins.