HFCL is to establish a new optical fibre cable manufacturing facility in Poland, marking a milestone in the firm’s global expansion strategy, and with the aim of addressing the increasing demand for optical fibre cables in European markets such as the UK, Germany, Belgium, France, Poland, etc.
HFCL aims to ramp up share of exports in its fibre cable vertical revenue from the current 30% to 70% within the next 4-5 years. Europe stands out to the company as a focal point for the company’s strategic initiatives, as it is projected to experience a compound annual growth rate (CAGR) of around 4.5% over the next five years, with the FTTH Council Europe estimating that around 308 million homes in the EU region will have FTTH connectivity by 2028.
HFCL including its subsidiary HTL Limited already has three manufacturing facilities in India with a 25 million fibre kilometres (fkm) p.a. capacity, with in-house research and development (R&D) Centres located at Gurgaonand Bengaluru along with invested R&D houses and other R&D collaborators at different locations in India and abroad. The company additionally has optical fibre and optical fibre cable manufacturing plants in Hyderabad, an optical fibre cable manufacturing plant in Goa and in its subsidiary HTL Limited in Chennai.
The potential to bring 7 million kilometres of fibre optic cable to Europe
The new manufacturing facility in Poland will begin with a capacity of 3.25 million fkm, with the potential to scale up to 7 million fkm, with initial capital outlay up to ~INR144 Crores. The company says that this strategic move will not only be able to enhance its agility, but also reduce transit times by approximately six weeks, increasing order fulfilment capacity.
The establishment of the manufacturing facility in Poland will be facilitated through the incorporation of a new step-down subsidiary in Poland under HFCL B.V., a wholly- owned subsidiary of the company in the Netherlands.
Mr. Mahendra Nahata, Managing Director, HFCL, says: "Our decision to set up a manufacturing unit in Poland underscores our commitment to meeting the evolving needs of our customers. With Europe expected to remain a key market for optical fibre cable-led communication, our foray into Poland not only ensures unfettered access to this growing European market, but also helps improve the agility and responsiveness in catering to increasing optical fibre cable demands of our customers. With this strategic expansion, we are poised to align with Europe's vision, which anticipates gigabit connectivity as a cornerstone of its future. Our commitment to Europe's digital future is based on the unique approach of superior quality, customised solutions and innovative solutions in the fastest turnaround time."
