HFCL Limited has announced the expansion of the current capacity of its high-quality optical fibre cable (OFC) manufacturing from 10 million fibre km/per annum to 33.9 million fibre km/per annum instead of 24.94 million fibre km as planned earlier. This is in continuation to its earlier expansion plans announced for its existing state-of-the-art manufacturing facility in Hyderabad, India.
HFCL is witnessing strong market demand for OFC 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 nearly Rs 4.7 billion 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 capitalise on the growing market demand for 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 overall margins of the company.
