Delhi-based telecommunications hardware manufacturer HFCL Ltd has amended plans to expand its fiber optic manufacturing capacity from 10 million fiber kilometers per year to 33.9 million fiber kilometers. The company had previously planned to expand its fiber optic capacity to 24.94 million kilometers per year.
To expand its manufacturing capacity, HFCL said it plans to invest Rs 470 crore and will finance the expansion through a combination of debt and internal funds. Capacity will be added in stages and is expected to be completed by December 2024.
HFCL is one of India’s leading suppliers of telecommunication hardware such as fiber optic cables, 5G radio access network (RAN) products and switching equipment to telecommunication companies, cable operators, railways and defense sectors.
It has a fiber optic and fiber optic cable manufacturing plant in Hyderabad and a fiber optic cable manufacturing plant in Goa. HFCL said the manufacturing expansion is a continuation of previous expansion plans for its Hyderabad plant.
HFCL expects double-digit growth each year as 5G rollout in India has stimulated demand for fiber optics in India, and telecom equipment exports are also expected to double.
“HFCL is witnessing strong market demand for fiber optic cable and this strategic initiative aims to achieve the dual objectives of increasing margins and insulating against procurement volatility,” the company said in a statement. said in
The company added that the expansion plan will not only strengthen its supply chain capacity, but also improve its overall profit margins.
In April, the Ministry of Roads, Transport and Highways announced that the National Highway Authority of India (NHAI) will have 10,000 kilometers of fiber optic cable infrastructure across the country by the end of 2024-25 to improve internet connectivity across India.
Business Standard reported in September 2022 that Indian telecom companies are expected to spend between $1.5 billion and $2.5 billion in India on fiber optic cables to support 5G networks over the next three to four years. there is 5G was announced in India in October and has been rolling out since then. It is used as a private network in over 400 cities and by several companies.
In February 2021, the government announced a Production Linked Incentive (PLI) scheme of INR 12 crore to encourage local manufacturing of telecom and networking equipment.
Commerce ministry data also showed that India’s telecom hardware exports increased by 90% from April 2022 to January 2023 to Rs 849 billion.
