HFCL to Boost IBR Cable Manufacturing Capacity at Hyderabad & Goa Plants
HFCL Ltd., an Indian manufacturer of Optical Fibre Cables (OFCs), telecom products and defence sector communication products, will be augmenting its manufacturing capacity of Intermittent Bonded Ribbon (IBR) cables, which is a type of OFC.
Investment to be made in Hyderabad & Goa Plants
HFCL will invest about Rs. 125.55 crore in its Hyderabad and Goa plants for the aforementioned capacity expansion. The company will fund this CapEx through a combination of debt and internal accruals.
HFCL to Add 17.28 Million fKm IBR Cable Production Capacity
Through the aforementioned capacity expansion, the company will add 17.28 million fibre KM (fKm) of annual IBR cable manufacturing capacity to the existing 1.73 million fKm per annum, representing an increase by about 10x. Therefore, post expansion, HFCL will have 19.01 million fKm of IBR cable manufacturing capacity annually, and a total of 42.36 million fKm of annual OFC production.
HFCL will execute this capacity addition in a phased manner from December 2025 to June 2026.
Move Targeted to Cater American & European Markets
HFCL’s decision to amp up its IBR cable manufacturing is prompted by increased demand from the North American and European markets. HFCL’s stock filing regarding this capacity addition said, “The company already has orders in hand of IBR cables from large hyperscalers, underscoring the market’s confidence in its capabilities”.
Demand for OFC in the US and Europe are witnessing a significant uptick. US’ OFC market is expected to grow with a CAGR of 10.8% between 2025 and 2033, whereas, Europe’s OFC market size is projected to grow with a CAGR of 7.5% from 2026 to 2033. This increase in demand is on account of 5G deployment and Fibre-To-The-Home (FTTH) projects.
IBR cables feature higher flexibility, better splicing, and lighter weight as compared to usual OFCs. IBR cables are better suited for high-density fibre deployment, making them ideal for deployment in hyper-scale data centres.
HFCL Suspends Earlier Plan to Expand Production
HFCL had planned OFC production capacity addition by 10 million fKm, which was to be undertaken by the company’s subsidiary, HFCL Technologies Pvt. Ltd. (HPTL). The company’s board had approved this expansion in January 2022. This plan has been suspended for now, as informed by HFCL, citing cross-border tensions between India and Pakistan. HPTL has its factory in Solan, Himachal Pradesh.
About HFCL Limited: Established in 1987, HFCL has its headquarters in Delhi. The company reported a consolidated revenue of Rs. 4,064.52 crore. The company caters primarily to the communication sector through optical fibre cables and transmission & access equipment manufacturing. HFCL has optical fibre cable manufacturing facilities in Goa and Hyderabad. HTL Limited, the company’s subsidiary, also has an optical fibre cables manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.
