HFCL Limited has approved an additional investment of ₹820 crore to expand its manufacturing capacities for Optical Fiber (OF), Optical Fiber Cable (OFC) and Preform. The expansion is aimed at meeting rising demand for optical connectivity from data centres, telecom networks, fibre-to-the-home deployments and other digital infrastructure applications in India and overseas markets.
The company’s Board has approved additional capacity of 4.60 million fiber kilometres per annum for Optical Fiber, 5.64 million fiber kilometres per annum for Optical Fiber Cable and 300 tonnes per annum for Preform. The Preform facility will be established through HFCL’s wholly owned subsidiary, HFCL Technologies Private Limited.
The new investment is in addition to approximately ₹980 crore of capital expenditure already approved for Optical Fiber, Optical Fiber Cable and Preform manufacturing projects. With the latest approval, total planned capital expenditure for these capacity expansion initiatives will rise to approximately ₹1,800 crore.
Once the expansion projects are completed, HFCL’s manufacturing capacity is expected to increase to 43.10 million fiber kilometres per annum for Optical Fiber, 62.00 million fiber kilometres per annum for Optical Fiber Cable and 600 tonnes per annum for Preform.
The proposed investment will be funded through an appropriate mix of internal accruals, proceeds from the preferential issue of warrants already issued to the promoter and promoter group entity, and borrowings. HFCL said the expansion is supported by its order book for Optical Fiber Cable and optical connectivity products, its business pipeline and the long-term demand outlook for optical communication infrastructure.
The rapid growth of hyperscale data centres, artificial intelligence, cloud computing and high-performance computing is increasing the volume of data moving within and between data centres. This is driving demand for high-capacity, reliable and low-latency optical connectivity.
Demand is also expected from telecom network modernisation, deeper fibre deployment, FTTH networks, enterprise connectivity and government-led digital infrastructure and rural connectivity programmes. The proposed Preform facility will strengthen HFCL’s backward integration. Preform is a key raw material used in Optical Fiber manufacturing, and additional in-house capacity is expected to reduce dependence on external suppliers and improve supply chain resilience.
Mahendra Nahata, Managing Director, HFCL, said, “The proposed investment marks an important step in HFCL’s journey towards building a larger and fully integrated optical communications manufacturing platform. The growing adoption of AI-enabled digital infrastructure, hyperscale data centres, cloud computing and advanced telecom networks is creating significant long-term opportunities for optical communication products globally.” He added that the investment would help HFCL meet customer requirements, improve supply chain resilience and enhance operational efficiencies.
HFCL’s portfolio includes Optical Fiber and Optical Fiber Cables, Optical Connectivity Solutions, telecom and defence equipment. The company operates R&D centres in Gurugram, Bengaluru and Hyderabad and manufacturing facilities across India. The capacity expansion is expected to strengthen HFCL’s integrated manufacturing base and support its domestic and international business across Europe, Asia Pacific, the Middle East, Africa and the US.
