HFCL Approves ₹400 Crore Investment To Expand Optical Fibre And Cable Manufacturing Capacity

New Delhi, August 4, 2026: Telecom equipment maker HFCL on Tuesday announced that its board has approved a fresh investment of approximately Rs 400 crore to expand its optical fibre and optical fibre cable manufacturing capacities.

The proposed expansion will be funded through a mix of internal accruals and debt and is expected to be completed by July 2028.

Capacity Expansion Approved

"In view of the company's strong order book for optical fibre cable (OFC) and optical connectivity products, a strong pipeline of additional business opportunities expected to materialise over the near to medium term, and the favourable long-term demand outlook globally, the Board of Directors... has approved a further expansion of the company's optical fibre and optical fibre cable manufacturing capacities with a total capital outlay of approximately Rs 400 crore..." HFCL stated in a regulatory filing.

HFCL noted that demand is being propelled by several factors, including Artificial Intelligence (AI) infrastructure, hyperscale data centres, cloud computing, high-performance computing, 5G deployments, FTTH and broadband expansion, enterprise fibreisation, rural connectivity initiatives and telecom network modernisation programmes.

Manufacturing Capacity To Increase

According to the filing, the company's total optical fibre manufacturing capacity will be scaled up to 38.50 million fibre kilometres (fkm) per annum from the current ongoing expansion target of 33.90 million fkm. Similarly, the optical fibre cable manufacturing capacity will be enhanced to 56.36 million fkm per annum, up from the ongoing target of 42.36 million fkm.

At present, the company has an existing capacity of 28 million fkm for optical fibre and 34 million fkm for optical fibre cables.

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Focus On Global Demand

"The proposed capacity expansion will strengthen HFCL's manufacturing capabilities, enhance its ability to execute current and future orders, improve operational efficiencies and economies of scale, strengthen supply chain resilience and support its export growth strategy. The expansion will also enable the company to derive greater value from its integrated manufacturing platform and backward integration initiatives, while further reinforcing its position as a leading global manufacturer of optical communication products," the company said.

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