Sterlite Technologies Ltd. Moves Forward With Expansion Plan
Sterlite Technologies Ltd. (STL), one of leading integrator of digital networks plans to go ahead with its expansion plan for enhancing the capacity of optical fibre cable manufacturing.
“Company has decided to lift the ‘pause and hold’” on expansion to move full throttle ahead” said Anand Agarwal, STL Group CEO, as reported by Economic Times dated 26th October 2020.
Sterlite Technologies Expansion Plans
Company plans to execute optical fibre manufacturing facility expansion in two phases. Under first phase it plans to increase the capacity from 18 million fibre Km (FKm) to 24 million Fkm by end of December 2020. Under second phase the manufacturing capacity shall be increased from 24 million Fkm to 33 million Fkm by March / April 2021.
Due to CoVid-19 pandemic, Sterlite Technologies had in May 2020 decided to go slow on expansion, which was to begin in June 2020. As mentioned by Outlook India dated 11th May 2020, Anand Agarwal had said “We have a plan of expanding cabling facility but we have slowed that down, we are currently looking at supply-demand scenario“.
Later, the financial figures of Q2 FY21 STL showed improvement in comparision with Q1 FY21 results. Total Revenue of the company went up by 24.22 % in Q2 FY21 amounting to Rs. 1,168 Cr. as compared to Rs. 885 Cr. in the previous quarter. Net Profit of the company in Q2 FY21 increased enormously by 96.36 % to Rs.55 Cr. as compared to Rs. 2 Cr. from Q1 FY21.
Order Book touched Rs. 10,705 crore and company had reached 90% of its capacity utilisation. Hence STL moved towards the original expansion plan.
As per the earlier plan of expansion STL had anticipated investment of around Rs. 300 crore. Now company has re-engineered and cost has lowered down to around Rs. 260 crore.
About Sterlite Technologies Ltd.: STL is global leader in end-to-end data network solutions, headquartered in Pune, Maharashtra. It has offices in India, China, US, SEA, Europe and MEA (Middle-East and Africa). The company is specialized in optical fiber and cables, hyper-scale network design, and deployment, and network software and offers bespoke integrated solutions.