HFCL, a provider of optical fiber cable (OFC) and solutions, announced its plans for setting up a OFC manufacturing plant in Poland.
HFCL’s investment is aimed at addressing the demand for OFC in European markets such as UK, Germany, Belgium,France, Poland, etc.
HFCL aims to ramp up share of exports in its OFC vertical revenue from the current 30 percent to 70 percent within the next 4-5 years.
Europe’s OFC market is projected to experience a (CAGR) of around 4.5 percent over the next five years with expected demand of 90 mn fkm p.a. by 2028. The FTTH council estimates around 308 million homes in the EU region to have FTTH connectivity by 2028, speeding up deployment by 3-5 years. This signals a rapid expansion of FTTH networks in these areas which will lead to increased demand of OFC.
HFCL’s manufacturing plant in Poland will begin with a capacity of 3.25 mn fkm and scalable up to 7 mn fkm, with initial capital outlay up to ~INR 144 crore.
This strategic move will reduce transit times by approximately six weeks, enabling increase in order fulfilment capacity. The establishment of the manufacturing facility in Poland will be facilitated through the incorporation of a new step-down subsidiary in Poland under HFCL.
HFCL including its subsidiary HTL has three manufacturing plants in India with a 25 mn fKm p.a. capacity, manufacturing OFC for customers across the world.
