HFCL approves additional capacity for optical fibre, cable and preform production, with Rs 820 crore earmarked for the latest expansion.
NEW DELHI (Economy India): Telecom equipment manufacturer HFCL Ltd has increased its planned capital expenditure to Rs 1,800 crore to expand production capacity for optical fibre, optical fibre cables and preforms used in manufacturing these products.
According to a company filing, the HFCL board has approved additional capacity expansion across all three product categories as the company seeks to strengthen its manufacturing capabilities and cater to rising demand for fibre-based telecom infrastructure.
HFCL Approves Major Capacity Expansion
Under the approved expansion plan, HFCL will add annual production capacity of:
- 46 lakh fibre kilometres (Kms) for optical fibre
- 56.4 lakh fibre Kms for optical fibre cable
- 300 metric tonnes (MT) for optical fibre preform
The company said the additional capital expenditure required for the proposed capacity expansion is estimated at around Rs 820 crore.
The expansion will take HFCL’s overall planned capital expenditure to Rs 1,800 crore.
Multiple Sources to Fund Expansion
HFCL said the additional investment will be financed through an appropriate combination of internal accruals, proceeds from the preferential issue of warrants already issued to the promoter and promoter group entity, as well as borrowings from financial institutions.
The funding mix is expected to provide the company with flexibility to support the capacity expansion while leveraging both internal resources and external financing.
Focus on Optical Fibre and Cable Manufacturing
Optical fibre and optical fibre cables are critical components of modern telecommunications infrastructure, supporting high-speed broadband, data centres, 5G networks and other digital connectivity requirements.
The additional capacity will strengthen HFCL’s manufacturing footprint across the fibre value chain, including preforms, optical fibre and optical fibre cables.
The move also comes as demand for fibre connectivity continues to increase with the expansion of broadband networks and the growing requirement for high-capacity digital infrastructure.
Expansion to Strengthen HFCL’s Position
By increasing capacity across multiple stages of production, HFCL is seeking to strengthen its position in the optical fibre and telecom equipment market.
The investment is expected to support the company’s ability to serve both domestic and international markets while improving its manufacturing scale.
The board-approved expansion represents a significant investment in HFCL’s fibre business and underscores the company’s focus on expanding its production capabilities amid growing demand for next-generation telecom infrastructure.
Source: Company Filing | PTI | Economy India
