The European Commission has exempted HFCL and its subsidiary HTL Limited from the anti-dumping duties. Mind that HFCL is the only Indian company to be exempted here, as every other Indian company exporting optical fiber cables are not exempted. Europacable filed a complaint on October 3, 2023, that imports of optical fiber cables originating in India were being dumped in the European market. This was causing harm to the European manufacturers. Thus, the European Commission had been conducting an investigation on the matter for the last several months.
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After the investigation was over, HFCL was exemtped from the anti-dumping duties. This has given a major boost to the company's share price on the Indian stock exchanges, as it is up more than 6% over its last closing price at the time of writing this.
Anti-dumping laws have been put in place by the Europe on OFC (optical fiber cable), and in 2021, all the OFC coming in from China were struck with anti-dumping duties. Under its investigation, the European Commission found no evidence of dumping in HFCL's case. However, other Indian companies were not exempted under this. The investigation was carried on for six months in total, and it will be interesting to see if other Indian companies are able to secure exemption from anti-dumping duties in the future.
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For now, this decision will help HFCL in boosting its business in the European market. This will also boost Europe's digitalisation plans as high quality fiber is required to carry huge amounts of data at super speeds. The anti-dumping duties apply to single-mode optical fiber cables originating in India, excluding cables below 500 meters with operational connectors and submarine use cables with plastic insulation and metal modules containing fibers.
