HFCL Limited announced the expansion of its capacity of its optical fiber manufacturing from 10 million fiber km / per annum to 33.90 million fiber km / per annum at its manufacturing facility at Hyderabad, India.
HFCL is witnessing strong market demand for Optical Fiber Cable and this initiative aims to achieve the dual objectives of margin accretion and insulation from sourcing vagaries. The company has earmarked an estimated Capex of ~ Rs 470 crore 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 capitalize on the growing market demand for optical fiber cables (OFC).