Cable NewsLatest NewsSpotlightTelecom, Internet

HFCL to Set Up Optical Fibre Cable Plant in Poland, Eyes European Market

Himachal Futuristic Communication HFCL logo

Himachal Futuristic Communications Ltd. (HFCL), a Delhi-headquartered Optical Fibre Cable (OFC) manufacturer, will be setting up a greenfield manufacturing facility in Poland. HFCL estimates an investment of Rs. 144 crore to develop this plant.

HFCL Expects to Execute Project by early 2025 through a Polish Subsidiary

HFCL’s expansion in Poland will be done through HFCL B.V., a soon-to-be incorporated wholly-owned Netherlands-based subsidiary of the company. HFCL B.V. will in turn have a Poland-based subsidiary, which will develop the new OFC manufacturing unit.

Moreover, work on the Poland facility is expected to be completed by February 2025. HFCL will be funding this expansion through a combination of debt and internal accruals.

Initial Capacity of 3.25 Mn. FKm, Scalable Up to 7 Mn. FKm Subject to Demand

HFCL, Hindustan Futuristic Factory

HFCL’s upcoming plant in Poland will be capable of rolling out 3.25 million Fibre Km (FKm) of OFCs initially, and this production capacity can be subsequently scaled up to 7 million FKm in case of increased demand. HFCL labelled this expansion as a part of its “global expansion strategy”, which seeks to address “the increasing demand for OFC in European markets such as UK, Germany, Belgium, France, Poland etc.”.

HFCL Targets Increasing Revenue Share of OFC Exports to 70%

Currently, exports contribute about 30% of the company’s top line from its OFC vertical. HFCL seeks to increase this figure to 70% in the coming 4 to 5 years.

Poland Preferred Choice of Location

HFCL has selected Poland for its new OFC unit on account of the country’s good connectivity with other European markets, well-developed ports and affordable labour. Elaborating on the decision to choose Poland, HFCL stated in its press release, “This strategic move will not only enhance HFCL’s agility but also reduce transit times by approximately six weeks, thereby enabling increase in order fulfillment capacity”.

“Foray into Poland Ensures Unfettered Access to Growing European Market” – HFCL MD

Mr. Mahendra Nahata, Managing Director, HFCL, said, “With Europe expected to remain a key market for optical fiber cable-led communication, our foray into Poland not only ensures unfettered access to this growing European market but also helps improve the agility and responsiveness in catering to increasing optical fiber cable demands of our customers”.

He added that HFCL seeks to offer high-quality customised solutions to its customers in Europe in the “fastest turnaround time”.

HFCL’s Stock Gains Over 2% Post Announcement of Expansion Plan

HFCL’s share prices were up by 2.63% after the company announced its plan to expand in Poland. A day after the announcement, the company’s shares were trading at Rs. 115.15 apiece as compared to Rs. 112.20 on the day of making this information public.

Volume of share trades of the company stood at 10,79,94,000 trades on the day of Poland OFC unit’s announcement against 9,20,71,000 trades on the previous trading day. This represents an increase of 17.29% in the volume of HFCL’s share trades.

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 cables manufacturing plant in Chennai. The company has a Cable Reinforcement Solutions Plant in Hosur, Tamil Nadu.