New Delhi: Indian communication network solutions provider HFCL plans to further expand its optic fibre manufacturing capacity, according to a statement.
HFCL plans to further expand its optic fibre manufacturing capacity
HFCL announced plans to increase its optical fibre manufacturing capacity from 10 million fibre km/per annum to 33.90 million fibre km/per annum instead of 24.94 million fibre km as planned earlier, the company said in the statement.
HFCL’s move to increase manufacturing capacity is in continuation with its earlier expansion plans from its existing manufacturing facility at Hyderabad.
HFCL is witnessing strong market demand for optical fibre 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 around Rs 470 crore and will be using debt and internal accruals as the mode of financing. The capacity increase will be done in a phased manner and is expected to be completed by December 2024, the statement noted.
The decision to enhance capacity expansion will further lead to operational synergy and help capitalise on the growing market demand for optical fibre cables (OFC).
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 the overall margins of the company.
The company provides communication network solutions to telcos, railways, and defence sectors.