The capacity of optical fibre manufacturing at HFCL will be increased from 10 million fibre km/year to 33.90 million fibre km/year by the end of December 2024.

HFCL said in a statement Thursday that the company has set aside nearly Rs 470 crores for capital expenditure and will finance it with debt and internal accruals.

HFCL had previously planned to increase its OFC production capacity to 24.94 million fibre kilometres. "This is in continuation to its earlier expansion plans announced for its existing state-of-the-art manufacturing facility in Hyderabad, India," the company said.

HFCL stated that it is experiencing "strong market demand" for OFC and that its strategic decision aims to achieve the dual goals of "margin accretion and insulation from sourcing vagaries."

"The capacity will be added in stages, with completion targeted for December 2024," HFCL said.

According to the equipment manufacturer, the decision to increase capacity will lead to additional operational synergy and help capitalise on the growing market demand for optical fibre cables.