HFCL Approves ₹400 Crore Expansion for Optical Fiber Capacity
By ThePip Desk
HFCL’s board approves a ₹400 crore expansion to boost Optical Fiber and Cable capacities by July 2028, aiming to meet escalating market demand.
HFCL’s Board of Directors has approved a significant capital outlay of approximately ₹400 crore for expanding its Optical Fiber and Optical Fiber Cable (OFC) manufacturing capacities. This strategic move, sanctioned at a meeting on August 4, 2026, aims to bolster the company’s production capabilities.
New Capacities and Timeline
The company plans to add 4.60 million fkm per annum capacity for Optical Fiber and 14.0 million fkm per annum for Optical Fiber Cable. These capacity enhancements are projected for completion by July 2028. The investment will be funded through a strategic mix of internal accruals and debt.
Currently, HFCL operates an Optical Fiber capacity of 28.0 million fkm per annum and an Optical Fiber Cable capacity of 34.0 million fkm per annum. Upon completion of these new additions and ongoing expansions, the total Optical Fiber capacity will reach 38.50 million fkm per annum. Optical Fiber Cable capacity is set to increase to 56.36 million fkm per annum.
Strategic Growth Drivers
This expansion directly addresses the escalating demand for OFC and optical connectivity products across both domestic and international markets. It also caters to requirements stemming from existing customer commitments, a robust order book, and an expanding business pipeline. HFCL reports sustained customer demand and ongoing engagement with clients across key geographies, providing strong visibility for future growth.
The move is set to strengthen HFCL’s manufacturing capabilities and enhance its ability to execute current and future orders. It will also improve operational efficiencies, achieve economies of scale, and reinforce supply chain resilience. This expansion specifically supports the company’s export growth strategy, leveraging its integrated manufacturing platform.
By reinforcing its production infrastructure, HFCL aims to derive greater value from its backward integration initiatives. This strategic capacity boost further solidifies its position as a leading global manufacturer of optical communication products in the technology enterprise sector.