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HFCL bags Rs 500 cr orders for optical fibre cable; plans Rs 388 cr capex

Press Trust of India  |  New Delhi 

gear maker said it has bagged two orders of worth around Rs 502 crore for supply of cable from (L&T) and a consortium led by ITI.

(HFCL) said it is investing Rs 388 crore to ramp up production capacity of cable and optical fibres to meet the market demand.

"(HFCL) is pleased to announce that it has won orders of Rs 502.73 crore for supply of cables (OFC) from (L&T) and a consortium led by ITI," the company said in a statement.

The company has bagged order of Rs 147.73 crore for supply of 16,882 km from which is planned to be for creating network infrastructure in under BharatNet Phase-II Project.

The major part of order valued at around Rs 355 crore was granted from by an ITI led consortium to HFCL for supply of 37,798 km to be deployed by them in under BharatNet Phase-II Project which aims to connect 1.5 lakh village panchayats with high speed network.

The government has already connected over 1 lakh village panchayat under Bharat Net Phase 1.

Apart from contributing to the domestic projects, HFCL has been exporting OFC for projects to 50 countries including those in

Considering above, HFCL is putting up a greenfield OFC in with an estimated capex of Rs 110 crore which would manufacture 10.50 million fibre kilometre (FKM) OFC per annum. This would take company's standalone OFC capacity from existing 8 million fkm pa to 18.50 million fkm pa. The commercial production will start at a new facility by June, 2019," HFCL said.

In addition, the company with a capex of Rs 50 crore approximately is also expanding annual OFC of its subsidiary in Chennai from existing 4 million fkm to 7 million fkm, the statement said.

"The OFC expansion in HTL is likely to be completed by February, 2019 which will take the HFCL's consolidated OFC capacity to 25.50 million fkm per annum," HFCL said.

Besides OFC expansion, HFCL is planning to set up a greenfield optical fibre at as a backward integration with a capex of Rs 228 crore which will enhance its operating margins.

"This plant will deliver 6.40 million fkm pa. Optical Fibre in Phase I. The plant is designed to scale up to 9.60 million fkm per annum in a short period. It is expected that the plant will be operational by July 2019," HFCL said.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 20:20 IST