New Delhi, September 15: HFCL has approved an additional investment of about ₹820 crore to expand its Optical Fiber, Optical Fiber Cable and Preform manufacturing capacities, taking the total planned capital expenditure for the programme to approximately ₹1,800 crore.
The company’s board approved additional annual capacity of 4.60 million fibre kilometres for Optical Fiber, 5.64 million fibre kilometres for Optical Fiber Cable and 300 metric tonnes for Preform. The latest investment is in addition to around ₹980 crore of capital expenditure approved earlier for the same manufacturing expansion programme.
On completion of the ongoing and newly approved projects, HFCL’s Optical Fiber manufacturing capacity is expected to increase to 43.10 million fibre kilometres per annum, while Optical Fiber Cable capacity will rise to 62 million fibre kilometres per annum. Preform manufacturing capacity is expected to reach 600 metric tonnes annually.
HFCL currently has annual Optical Fiber capacity of 28 million fibre kilometres and Optical Fiber Cable capacity of 39 million fibre kilometres. Ongoing expansion projects are already expected to increase these capacities to 38.50 million fibre kilometres and 56.36 million fibre kilometres, respectively, before the newly approved additions are completed.
The Optical Fiber and Optical Fiber Cable expansion projects are expected to be completed by July 2028, while the Preform Manufacturing Facility is expected to be established by October 2028.
The Preform Manufacturing Facility will be implemented through HFCL Technologies Private Limited, a wholly owned subsidiary of HFCL. Preform is a critical raw material used in Optical Fiber manufacturing, and the proposed facility is intended to strengthen backward integration, improve supply-chain resilience and reduce dependence on external suppliers.
HFCL said the Optical Fiber and Optical Fiber Cable projects will be funded through an appropriate mix of internal accruals and/or debt financing. The Preform project may be financed through a combination of internal accruals, debt and proceeds from preferential warrants already issued to the promoter and promoter group entity.
The company said the expansion is aligned with demand arising from AI-enabled digital infrastructure, hyperscale data centres, cloud computing, high-performance computing, telecom network expansion, fibre-to-the-home deployments, enterprise fibreisation, rural connectivity initiatives and telecom network modernisation programmes.
HFCL’s combined order book for Optical Fiber Cable and connectivity solutions stood at approximately ₹19,000 crore as of the filing date. The company separately said it continues to see sustained demand for OFC and connectivity products, providing visibility for future growth.
The company expects the expanded manufacturing platform to improve operational efficiencies and economies of scale, strengthen supply-chain security and support its presence across domestic and international markets.
