Date: August 04, 2026
Board Meeting Outcomes
The Board of Directors meeting was held on August 04, 2026, commencing at 04:30 p.m. and concluding at 05:00 p.m. The Board approved a significant capacity expansion project with the following material decisions:
- Capital Outlay: Approved ₹400 crore for expansion of Optical Fiber (OF) and Optical Fiber Cable (OFC) manufacturing capacities
- Funding Mode: To be funded through appropriate mix of internal accruals and debt, as required
- Expansion Details: Additional capacity expansion of 4.60 million fiber kilometers (Mn fkm) per annum in Optical Fiber and 14.0 million fiber kilometers per annum in Optical Fiber Cable capacities
Capacity Expansion Details
Current Status:
- Optical Fiber existing capacity: 28.0 Mn fkm per annum
- Optical Fiber Cable existing capacity: 34.0 Mn fkm per annum
- Both operating at 100% capacity utilization
Ongoing Expansion:
- Optical Fiber capacity increasing from 28.0 Mn fkm to 33.90 Mn fkm per annum
- Optical Fiber Cable capacity increasing from 34.0 Mn fkm to 42.36 Mn fkm per annum
New Approved Expansion:
- Additional 4.60 Mn fkm per annum in Optical Fiber
- Additional 14.0 Mn fkm per annum in Optical Fiber Cable
Post-Expansion Capacity:
- Total Optical Fiber manufacturing capacity: 38.50 Mn fkm per annum
- Total Optical Fiber Cable manufacturing capacity: 56.36 Mn fkm per annum
Timeline: Expected completion by July 2028
Strategic Rationale
The expansion is driven by:
- Strong order book for Optical Fiber Cable and optical connectivity products
- Strong pipeline of additional business opportunities expected to materialize over near to medium term
- Favourable long-term demand outlook globally
- Increasing investments in Artificial Intelligence (AI) infrastructure
- Hyperscale data centers and cloud computing growth
- High-performance computing requirements
- 5G deployments and network modernization
- FTTH and broadband expansion
- Enterprise fibreisation initiatives
- Rural connectivity programs
Expected Benefits
The expansion will:
- Enable the Company to cater to increasing demand for OFC and optical connectivity products across domestic and international markets
- Address requirements from existing customer commitments and healthy order book
- Strengthen HFCL's manufacturing capabilities
- Enhance ability to execute current and future orders
- Improve operational efficiencies and economies of scale
- Strengthen supply chain resilience
- Support export growth strategy
- Derive greater value from integrated manufacturing platform and backward integration initiatives
- Reinforce position as leading global manufacturer of optical communication products