HFCL Limited, an Indian tech company engaged in manufacturing telecom equipment, including optical fiber cable (OFC), announced its expansion into Europe. The company calls it a strategic move. HFCL has set up a state-of-the-art OFC manufacturing plant in Poland. It is the first ever OFC plant by HFCL in Europe and it will cater to the growing demand for OFC in the European markets such as France, Poland, UK, Germany, Belgium, and more.
HFCL wants to ramp up the share of exports in its OFC vertical revenue from the current 30% to 70% in the next 4 to 5 years. Europe's OFC market is poised to grow at a modest 4.5% CAGR (compounded annual growth rate) over the next five years. The expected demand in Europe for OFC is expected to reach 90 million fkm p.a. by 2028.
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According to the FTTH Council, over 308 million homes in the EU region will have FTTH connections by 2028. This means that the demand for OFC will increase in the European region and HFCL wants to capitalise on that. By setting up a local production plant in Europe, HFCL will be able to meet the regulatory shifts and cater to existing customers in a better manner.
The shift from traditional cable and copper networks is happening at a rapid pace. Thus, HFCL has positioned itself well to meet the needs of OFC in the European region. HFCL said that Poland was an attractive option for the company to set up a plant because there the company could get specialised skills of workers at a relatively lower cost than other European nations.
The HFCL plant in Poland will begin with a capacity of around 3.25 fkm and will be scalable up to 7 mn fkm. The intial capital outlay for the plant is up to Rs 144 crore.
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Mahendra Nahata, Managing Director, HFCL, said, "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."
