Sterlite Technologies is planning to invest Rs 3 billion-Rs 4 billion in order to expand its fibre and cable manufacturing capacities. Through this, the company intends to cater to the increased demand arising out of data network expansions by telecom operators and the government’s National Optic Fibre Network (NOFN) project.
The company plans to increase the manufacturing capacity of its copper and optical fiber cable manufacturing plants that produce 10 million kilometres of cable currently to 15 million kilometres by December 2015. For the transmission segment, the company has a total outlay Rs 80 billion, out of which Rs 50 billion has been invested while the remainder will be spent over 2-2.5 years.
According to Sterlite, growth rate of the telecom vertical increases year over year. Last year, it was around 30-35 per cent and the company foresees similar growth in 2015 as well, due to deployment of its products in government projects.
At present, Sterlite?s order book is at around Rs 46-47 billion, of which Rs 23 billion worth projects are from the telecom sector. More than 40 per cent of the recent rollouts of 4G LTE services by Indian operators in the form of fiber deployment have been executed by Sterlite. Further, the company is a strategic partner to the NOFN rollout with 60 per cent of Sterlite’s products solutions being deployed in the project.
