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HFCL Starts New Polymer Manufacturing Unit in Hosur

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HFCL Ltd., a manufacturer of optical fibre cables has announced that its subsidiary HTL Ltd. has established a polymer compounding manufacturing facility at its Hosur plant in Tamil Nadu.

Backward Integration for HFCL Cable Manufacturing Operation

HFCL’s new polymer compounding facility at Hosur will be a backward integration for its optical fibre cable (OFC) manufacturing operation, as the polymers are required as raw materials for cable manufacturing.

HFCL stated that the Hosur plant has an installed production capacity of 24,000 MT per annum of Polyolefin-based compounds of various grades & colours. This plant will serve HFCL’s manufacturing plants at Goa, Hyderabad & HTL Chennai.

HFCL’s New Polymer Manufacturing Unit at Hosur to Improve Its Profitability

HFCL in its statement said that the polymer manufacturing unit will help improve their profitability since these polymers are a significant cost component in the production of optical fibre cables being supplied to domestic and export markets.

The plant in Hosur already manufactures various necessary raw materials required for OFC such as Aramid/Kevlar Rods (ARP), Fibre Reinforced Plastic (FRP) Rods and Impregnated Glass Fibre Reinforcement (IGFR).

Recent Investment Plans of HFCL in the Telecom Sector

HFCL on 5th October 2022 announced plans to invest Rs 450 crore in the design-linked incentive (DLI) scheme of the Department of Telecommunications (DoT) to manufacture telecom products such as routers, antennas and 5G radio equipment. The company applying under the DLI scheme has to design and manufacture its products by itself.

Recently, HFCL has partnered with Qualcomm Technologies for design and development of 5G outdoor small-cell products. Small cell deployments help the 5G service provider to enhance coverage in places where existing macro cells have coverage holes or blackspots, or where coverage does not exist at all. In addition, small cells provide capacity enhancements by offloading traffic from macro cells in densely occupied locations. Commenting on the development HFCL Managing Director, Mr. Mahendra Nahata said, As operators start rolling out 5G networks in India, they need outdoor small cells to complement their macro networks for a seamless 5G experience”.

About HFCL: Delhi-headquartered HFCL was founded in 1987, and it caters mainly to the communication sector through OFC and transmission & access equipment manufacturing. The company has OFC manufacturing facilities in Goa, Chennai and Hyderabad. HFCL reported total revenue of Rs 4,727.11 in FY-2021-22.