HFCL added 1.49% to Rs 112.40 after the company's board approved to the strategic expansion into Europe with the setting up of optical fiber cable (OFC) manufacturing facility in Poland, Europe.
The establishment of the manufacturing facility in Poland will be facilitated through the incorporation of a new stepdown subsidiary in Poland under HFCL B.V., a wholly-owned subsidiary of the company in the Netherlands.The existing capacity is 25.00 mfkm/pa, the current ongoing expansion is up to 10.00 mfkm/pa and the proposed further capacity addition by 3.25 mfkm/pa.
The proposed manufacturing facility in Poland will be constructed with an initial capacity of 3.25 mfkm p.a. with a capital outlay up to Rs 144 crore through debts and internal accruals financing mode. This facility is scalable up to 7 mfkm p.a. The proposed capacity is expected to be added by February 2025.
The company said that it aims to ramp up share of exports in its OFC vertical revenue from the current 30% to 70% within the next 4-5 years.
Mahendra Nahata, managing director, HFCL, said, Our decision to set up a manufacturing unit in Poland underscores our commitment to meeting the evolving needs of our customers. 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. With this strategic expansion, we are poised to align with Europe's vision, which anticipates gigabit connectivity as a cornerstone of its future. Our commitment to Europe's digital future is based on the unique approach of superior quality, customised solutions and innovative solutions in fastest turnaround time.
HFCL is a leading technology company specializing in creating digital networks for telcos, enterprises, and governments. Over the years, HFCL has emerged as a trusted partner offering sustainable high-tech solutions with a commitment to providing the latest technology products to its customers. HFCLs strong R&D expertise coupled with its global system integration services and decades of experience in fiber optics enable it to deliver innovative digital network solutions required for the most advanced networks.
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