HFCL Approves Additional ₹820 Crore Capex for Capacity Expansion, Total Capex Reaches ₹1,800 Crore
HFCL Limited's Board approved an additional ₹820 crore capex for expanding Optical Fiber, OFC, and Preform manufacturing capacities. This brings the total planned capex to ₹1,800 crore. The expansion will increase capacities to 43.10 Mn km for OF, 62.00 Mn km for OFC, and 600 MT for Preform. OF/OFC expansion is expected by July 2028, and Preform by October 2028.
The significant capital expenditure and expansion of core manufacturing capacities are expected to have a material impact on HFCL's market position, revenue, and profitability.
The announcement details a significant capacity expansion with substantial investment, driven by strong order books and a positive long-term demand outlook, indicating growth and strategic progress for the company.
HFCL Limited's Board of Directors has approved an additional investment of approximately ₹820 crore for the expansion of its Optical Fiber, Optical Fiber Cable, and Preform manufacturing capacities. This brings the total planned capital expenditure for these initiatives to approximately ₹1,800 crore, an increase from the previously approved ₹980 crore.
The expansion includes an additional capacity of 4.60 Mn Fiber Kms per annum for Optical Fiber, 5.64 Mn Fiber Kms per annum for Optical Fiber Cable, and 300 MT per annum for Preform. The funding for this investment will come from a mix of internal accruals, proceeds from a preferential issue of warrants, and borrowings from financial institutions.
Upon completion, HFCL's manufacturing capacities will increase to 43.10 million fiber kilometres per annum for Optical Fiber, 62.00 million fiber kilometres per annum for Optical Fiber Cable, and 600 MT per annum for Preform. The Optical Fiber and Optical Fiber Cable capacity expansion projects are expected to be completed by July 2028, while the Preform Manufacturing Facility is slated for establishment by October 2028.
This strategic investment aims to create a larger, integrated, and resilient optical fiber manufacturing platform, covering the value chain from Preform to Optical Fiber, Optical Fiber Cable, and Connectivity Solutions. The expansion is driven by HFCL's strong order book, a robust pipeline of business opportunities, and a favorable long-term demand outlook globally, particularly from AI-enabled digital infrastructure, hyperscale data centers, cloud computing, and telecom network expansion.
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HFCL Limited filed this with the NSE as a statutory disclosure, categorised under capex. It is a primary document, not a recommendation, and the desk marks it high impact, which is the band that most often changes something.
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See the model portfoliosA plain-language summary of a public exchange filing by HFCL Limited. Read the original for the full detail.