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HFCL to expand optical fibre cable manufacturing with Rs 35 cr investment

Press Trust of India  |  New Delhi 

Telecom will invest 35 crore on expanding manufacturing facility to 10.5 million route fibre kilometre by June this year, the company said in a filing Monday.

(HFCL) said the board of the company in its meeting held Monday "approved the proposal of enhancing additional of Cable (OFC) at from 7 million Fibre Kilometre (fkm) to 10.5 million fkm where the company is already setting up (OF) and OFC manufacturing facilities".

The company has existing production capacity of 8 million fkm approximately and working with utilisation capacity of 96 per cent.

It is already working on adding 7 million fkm which the board has now enhanced by another 3.5 million fkm.

With this increment, the company will have total production capacity of 18.5 fkm by June 2019.

"Additional investment required for enhancement of capacity is 35 crore," the filing said.

Besides, addition in OFC production, the board of the company approved interim dividend of 3.25 per share on cumulative redeemable preference shares (CRPS) of Rs 100 each for financial year 2018-19.

board also approved redemption of over 60.37 lakh or 6.5 per cent CRPS of Rs 100 each worth Rs 60.38 crore.

"Out of 60,37,500 CRPS, 48,75,000 CRPS shall be redeemed on January 18, 2019 and balance 11,62,500 CRPS shall be redeemed on March 31, 2019," the filing said.

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

First Published: Mon, January 07 2019. 21:30 IST