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HFCL to set up 260 Crore optical fiber plant in Telangana

HFCL would be setting up a Rs. 260 Crore optical fiber plant in the Ranga Reddy district of Telangana. The facility would be producing 6.4 million fiber kilometers per annum. The company’s aim is to reduce the input cost and overcome the shortage of fiber supply in domestic and international market.

India: Himachal Futuristic Communications Limited (HFCL) would be setting up a Rs 260-crore plant at Fab City in Ranga Reddy district of Telangana for manufacturing optical fiber.

The Telangana facility is being set up as a backward integration of optical fiber cable manufacturing to reduce the input cost and overcome the worldwide shortage of fiber supply, said the company in a statement. The facility will likely be producing 6.4 million fiber kilometers per annum.

The total cost of project is valued at Rs 260 crore which would be funded by debt, internal accruals and fresh funding. The unit will become operational and commence production in eighteen months’ time. The manufacturing facility will produce optical fibers that will be used for telecommunication (4G/5G) and various networks for broadband & FTTx in India and abroad.

HFCL manufactures optical fiber cables at its Goa plant and at Chennai through its subsidiary HTL Limited.

According to TechSci Research, the setting up of the Telangana plant will have a positive impact on the fiber optics market in India. The optical fibers produced at the facility will be used in 4G/5G, various networks for broadband and FTTx and thus open enormous potential for telecommunication industries in India. Moreover, government initiatives, including Digital India, Smart Cities Vision and National Optical Fiber Network, coupled with growing investments in data centers and increasing popularity of FTTH (Fiber to the Home) will ensure robust growth in coming years.

According to the recently published report by TechSci Research, India Optical Fiber Cables Market, By Type (Single-Mode Vs. Multi-Mode), By Material (Glass Vs. Plastic), By End User (IT & Telecom, Government, MSO (Triple Play), Defense, Healthcare & Others), Competition Forecast & Opportunities, 2013 – 2023”, India optical fiber cables (OFC) market is projected to grow at a CAGR of 17% through  2023. Growth in the market is majorly expected to be backed by rising investments in OFC network infrastructure by the Indian government to increase internet penetration across the country, which is in line with the government’s initiatives such as Smart Cities Vision and Digital India. Moreover, growing demand for OFC from IT & telecom sector, rising number of mobile devices, increasing adoption of FTTH (Fiber to the Home) connectivity and surging number of data centers is anticipated to fuel optical fiber cables market in India over the coming years.

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