HFCL has approved an additional ₹820 crore investment to expand optical fiber, optical fiber cable and preform manufacturing capacities, taking total planned capex to ₹1,800 crore.
HFCL Limited has approved an additional ₹820 crore investment to expand its Optical Fiber (OF), Optical Fiber Cable (OFC) and Preform manufacturing capacities. The HFCL investment was approved by the company’s Board of Directors at its meeting held on 14 September 2026.
The additional capital expenditure is over and above the earlier approved ₹980 crore. This takes HFCL’s total planned capex to approximately ₹1,800 crore.
HFCL Investment to Expand Optical Fiber Capacity
The expansion will significantly increase HFCL’s manufacturing capacity across optical communications products.
After completion, the company’s annual capacities are expected to reach:
- Optical Fiber: 43.10 million fiber km
- Optical Fiber Cable: 62 million fiber km
- Preform: 600 MT
The latest investment will add 4.60 million fiber km of Optical Fiber capacity, 5.64 million fiber km of Optical Fiber Cable capacity and 300 MT of Preform capacity.
HFCL Expansion to Be Completed by 2028
The Optical Fiber and Optical Fiber Cable expansion is expected to be completed by July 2028. The Preform facility will be established through HFCL Technologies, a wholly owned subsidiary, and is targeted for completion by October 2028.
HFCL will fund the expansion through a combination of internal accruals, proceeds from preferential warrants already issued to promoters and borrowings.
HFCL Investment Backed by Strong Order Book
The expansion comes as HFCL sees strong demand for optical fiber and connectivity products. The company has an order book of around ₹19,000 crore for OFC and connectivity products.
Demand is being driven by the growth of AI-enabled data centres, hyperscale facilities and cloud computing. Telecom network expansion and fiberisation programmes are also supporting demand for optical connectivity infrastructure.
HFCL Builds Integrated Optical Communications Platform
HFCL Managing Director Mahendra Nahata said the investment will help the company build a larger and fully integrated optical communications manufacturing platform.
The expansion is also expected to strengthen HFCL’s supply-chain resilience and support its position in the growing optical communications market.
Source: PSU Connect
