HFCL Expands Optical Fiber Value Chain with ₹1,800 Cr Capex
HFCL Limited’s Board of Directors has approved an additional capital expenditure (CapEx) of Rs. 820 crore for expansion of Optical Fiber Cable (OFC), Optical Fiber (OF), and preform manufacturing capacity. This investment is expected to be financed via a mix of internal accruals and / or debt.
Notably, HFCL has been infusing capital to increase its manufacturing capabilities in optical fiber segment, as can be seen in its previously approved CapEx plans. With addition of the latest CapEx approval to the previous ones, the total investment for expansion has reached Rs. 1,800 crore.
HFCL’s Latest 820 Cr. CapEx Plan for Preform, OF & OFC
Latest investment of Rs. 820 crore is divided into two parts, where Rs. 670 crore is for expanding preform capacity, while the company will direct Rs. 150 crore towards further increasing OF and OFC manufacturing capacity.
HFCL 670 Cr. Investment in Preform for a Robust Supply Chain
HFCL will direct Rs. 670 crore from the latest 820 Cr. approved investment to further augment its preform manufacturing capabilities. With this investment, the company expects to further add 300 MTPA capacity on top of the 300 MTPA capacity that will come up soon. This will take the total capacity of Preform to 600 MTPA once these plans reach completion.
As preform is the raw material for Optical Fiber, it is a vital part of the supply chain which the company currently outsources. Having an in-house supply chain will curb this dependency and increase the companies profit margins and reduce dependency.
HFCL’s Latest Rs. 150 Cr Investment Approved for OF & OFC
The company will direct Rs. 150 crore towards further increasing OF and OFC manufacturing capacity.
Through this 150 Cr. investment, HFCL expects to add 4.60 Mn fkm p.a. in OF and 5.64 Mn fkm p.a. in OFC. This makes the new target capacity for OF 43.10 Mn fkm p.a. and for OFC 62.00 Mn fkm p.a. This capacity is expected to be added by July 2028.
HFCL’s Ongoing Optical Fiber, OFC and Preform CapEx
Earlier CapEx Plans for OF & OFC Expansion
In the previous fiscal year, HFCL laid out an expansion plan, which is currently underway, to increase manufacturing capacity for OF and OFC. As per this previous expansion plan under execution, optical fibre capacity is being increased from 28.0 Million Fiber Km per annum (Mn fkm p.a.) to 33.90 Mn fkm p.a., and OFC capacity is being increased from 34.0 Mn fkm p.a. to 42.36 Mn fkm/p.a. This ongoing expansion is expected to be completed by December 2026.
Building on top of this undergoing expansion, the company approved Rs. 400 crore CapEx in August 2026 to further expand its OF and OFC capacities. Under this plan, the company expects to add 4.60 Mn fkm p.a. OF capacity and reach 38.50 Mn fkm p.a. As for OFC, HFCL expects to add 14.0 Mn fkm p.a., taking the capacity to 56.36 Mn fkm p.a. This expansion is expected to be completed by July 2028.
HFCL’s Earlier CapEx Plan for Establishing Preform manufacturing
Apart from Optical Fiber and Optical Fiber Cable capacity expansion, the company had approved Rs. 580 crore investment in March 2026 to set up a new preform facility through its subsidiary HFCL Technologies Private Limited (HTPL). HFCL had taken this game-changing decision to establish an in-house raw material supply chain with a preform manufacturing facility.
This facility is expected to produce 300 Metric Tonnes Per Annum (MTPA) of preform. The preform facility is expected to be established by October 2028.
OFC Market Expected to Grow at 14.27% CAGR During 2025-2030
According to the company, this decision is backed by surging demand for OFC, driven by AI-enabled digital infrastructure, hyperscale data centers, cloud computing, 5G/telecom network expansions, Fiber-to-the-Home (FTTH), and government-led rural connectivity programs.
An analysis report by Mordor Intelligence said India’s Optical Fiber Cable and Accessories Market is expected to grow at a Compound Annual Growth Rate (CAGR) of 14.27% during the period 2025-2030.
The company also mentioned that this expansion plan was approved “in view of the Company’s strong order book for Optical Fiber Cable and optical connectivity products.” HFCL’s combined order book for OFC and connectivity products stands at approximately Rs. 19,000 crore.
About HFCL Limited: Established in 1987, HFCL has its headquarters in Delhi. It 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 cable manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.
