HFCL announces expansion of IBR Cable Manufacturing Capacity

In line with the Company's strategy to diversify its optical fiber cable product portfolio, capture high-value market segments, and drive market expansion, the Board has approved the enhancement of Intermittent Bonded Ribbon (IBR) cable manufacturing capacity from ~1.73 million fiber kilometres per annum (mfkm/p.a.) to ~19.01 mfkm/p.a. at its existing facilities in Hyderabad and Goa with a total capital outlay of approximately ₹125.55 Crores.

This expansion is aimed at meeting rising global demand, particularly from North America and Europe. The Company already has orders in hand of IBR cables from large hyperscalers, underscoring the market's confidence in its capabilities. It strategically positions HFCL as a key player in this specialized and high growth segment.

IBR cables are known for their superior performance and suitability in high-density fiber deployments, offering enhanced flexibility, splicing efficiency and reduced weight, making them ideal for data centres and telecom networks.

Upon completion of the aforesaid expansion, the Company's consolidated OFC manufacturing capacity will reach ~42.36 mfkm/p.a.

Further, in continuation to the previously proposed expansion of the Optical Fiber Cable manufacturing facility by 10 mfkm/p.a., which was to be undertaken through the Company's wholly-owned subsidiary, HFCL Technologies Private Limited (HTPL), has been temporarily put on hold due to the prevailing trans-border security situation in Jammu & Kashmir. In view of the current concerns and associated operational risks in the region, the proposed expansion will remain suspended until the situation stabilises and a favourable environment for industrial development is restored.

Shares of HFCL Limited was last trading in BSE at Rs. 81.29 as compared to the previous close of Rs. 82.11. The total number of shares traded during the day was 254474 in over 4562 trades.

The stock hit an intraday high of Rs. 82.86 and intraday low of 81.00. The net turnover during the day was Rs. 20827214.00.

Source : Equity Bulls

Keywords

HFCL INE548A01028 TelecomCables Expansion IBRCable ManufacturingCapacity