HFCL Limited (HFCL), a leading technology enterprise and integrated next-gen communications product including optical fiber cable (OFC) and solutions provider, announced its strategic expansion into Europe with the setting up of a state-of-the-art OFC manufacturing plant in Poland. This move marks a significant milestone in the company’s global expansion strategy, aimed at addressing the increasing demand for OFC in European markets such as UK, Germany, Belgium, France, Poland, etc.
With an ambitious vision to capitalize on emerging market opportunities and strengthen its position as a key player in the OFC domain, HFCL aims to elevate the share of exports in its OFC vertical revenue from the current 30 per cent to an impressive 70 per cent within the next 4-5 years. Europe, with its promising growth prospects, stands out as a central focus for HFCL’s strategic initiatives.
The OFC market in Europe is anticipated to witness a compound annual growth rate (CAGR) of approximately 4.5 per cent over the next five years, with an expected demand of 90 million fiber kilometers per annum by 2028. The FTTH council estimates that around 308 million homes in the EU region will have FTTH connectivity by 2028, accelerating deployment by 3-5 years. This rapid expansion of FTTH networks in the region is poised to drive an increased demand for OFC.
Various factors, such as the bandwidth limitations of traditional cable and copper networks, regulatory mandates favoring fiber deployment, and rising traffic demands, emphasize the critical necessity for comprehensive fiber solutions. Moreover, recent geopolitical developments and regulatory shifts, including the potential imposition of anti-dumping duties, underscore the importance of localized manufacturing to mitigate risks and ensure enhanced access to target markets seamlessly. HFCL’s decision to establish a manufacturing presence in Europe aligns perfectly with this imperative, safeguarding against potential regulatory shifts and enhancing competitiveness in the region. This planned expansion is expected to result in a significant uptick in purchases by HFCL’s existing customers
HFCL’s cutting-edge manufacturing plant in Poland is set to commence operations with a capacity of 3.25 million fiber kilometers (fkm), which can be further scaled up to an impressive 7 million fkm. The initial capital outlay for this endeavor is estimated to be around ~INR144 Crores, aimed at meeting the rising demand for optical fiber cable (OFC). This strategic initiative is designed not only to bolster HFCL’s operational flexibility but also to significantly reduce transit times by approximately six weeks, thereby enhancing the company’s capability to fulfill orders promptly.
Mahendra Nahata, Managing Director, HFCL, emphasized, “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.”
The establishment of HFCL’s optical fiber cable (OFC) manufacturing plant in Poland represents a major milestone in the company’s quest for global leadership in telecommunication solutions. Leveraging its technological prowess, operational efficiency, and strategic vision, HFCL is not only poised to generate employment opportunities but also catalyze industrial progress in Poland.
HFCL, along with its subsidiary HTL Limited, currently operates three state-of-the-art manufacturing plants in India with an annual capacity of 25 million fiber kilometers (fKm), producing top-tier OFC renowned for its quality worldwide. With the addition of this new facility in Poland, HFCL embarks on a journey to expand its international market presence while maintaining its commitment to delivering the same high-quality products to its European customers. This move underscores HFCL’s dedication to global excellence and reinforces its position as a leading player in the telecommunications industry.
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, a leading technology enterprise and integrated next-gen communications product including optical fiber cable (OFC) and solutions provider, announced its strategic expansion into Europe with the setting up of a state-of-the-art OFC manufacturing plant in Poland.){kind=link}