Pune-based Sterlite Technologies, a transmission services provider for telecom and power sectors, will invest around Rs 250 crore for hiking its optical fiber production capacity.
The company will increase its annual manufacturing capacity to 20-million km, which would position it amongst top three global manufacturers. At present, the company makes 6 million km of optical fibre and is under the process of expanding it to 12 million km.
The capacity addition would be completed by 2011.
“Sterlite continues to be bullish on the optical fiber industry in Asia and globally. We would continue to leverage our global customer relationships and global presence, as well as the unique knowledge, expertise and infrastructural base created over the last 15 years in this business, to enhance our global market share in the growing optical fiber market,” Sterlite Technologies CEO & Director Anand Agarwal said.
The expansion would be done by through a combination of brownfield expansion at its existing facility in Aurangabad, and a green-field project. The location of the green-field project is yet to be finalised.
The decision was taken at the company’s board meeting held today.
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The company’s board also approved preferential issue of upto 73 lakh warrants, and the company intends to use the proceeds for expansion plans and general corporate purposes.