Now Reading: HFCL approves Rs 400 crore expansion of fibre capacity
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HFCL approves Rs 400 crore expansion of fibre capacity
HFCL’s board has approved about Rs 400 crore to expand its optical fibre and optical fibre cable manufacturing capacity, with completion expected by July 2028. The Delhi-based telecom equipment maker will use…
The Story in Brief
HFCL’s board has approved about Rs 400 crore to expand its optical fibre and optical fibre cable manufacturing capacity, with completion expected by July 2028. The Delhi-based telecom equipment maker will use internal accruals and debt to fund the plan.
Optical fibre capacity is set to rise to 38.50 million fibre kilometres annually, from an ongoing expansion target of 33.90 million. Cable capacity will increase to 56.36 million fibre kilometres, against 42.36 million currently targeted. HFCL cited demand from AI infrastructure, data centres, cloud computing, 5G, broadband, rural connectivity and network upgrades. It said the investment would support order execution and exports.
The Indian Opinion
The easy story is that AI and 5G will automatically turn every capacity addition into profits. That is not guaranteed. HFCL still has to finance the project, complete it on schedule and convert demand into orders without squeezing margins. The opposite claim, that new capacity must mean waste, is just as weak when the company points to existing orders and export plans. Investors should watch two figures through July 2028: utilisation of the new lines and the returns earned on the Rs 400 crore investment.
Source: telecom.economictimes.indiatimes.com
This story was synthesised by AI from the source linked above.
