At a time when digitisation is ruling the markets across various sectors and the hunger for high-speed internet and telecommunication network is growing, the optical fibre segment globally as well as in India offers a lucrative business opportunity. However, the optical fibre market in India worth $881.5 million and growing at a CAGR of 19.7 per cent is still dominated by overseas players.
But, the optical fibre industry is witnessing a change, thanks to the disruption caused by the recent launch of JioFiber services by Reliance and the other telecommunication service providers.
With 627 million people in India projected to have access to internet by 2019, according to a market research firm Kantar IMRB, the optical fibre manufacturing in India still remains a key challenge.
Bengaluru-based Citadel Intelligent Systems (CIS), founded in 2017, is the only start-up in India manufacturing optical fibre. It has grown significantly posting $3 million in revenue last fiscal and expects to reach $10 million in FY20. The start-up, which aims to achieve Rs 400 crore revenue in the next 4-5 years, is led by KK Shetty, an industry veteran whose 30 years of experience spans across the telecommunication, datacom and engineering fields.
“CIS is set to launch its second manufacturing plant in Vasai in Maharashtra, after its plant at Hoodi in Bengaluru, to cater to the growing demand due to technological transformation. This Indian start-up has in fact tied up with global companies such as AFL (America Fujikura Limited), which provides optic fibre solutions in India and abroad, as well as Israeli firm Ray-Q, which provides optical fibres to aerospace, defence and naval) business,” Shetty said.
He added that the burgeoning demand for optic fibre products and solutions across sectors is the main reason for CIS to launch a second manufacturing unit within two years of its inception. Shetty said that with the launch of one more manufacturing facility, he is hopeful of doubling the production capacity and expects 50 per cent growth annually.
When asked how a two-year-old startup-like CIS aims to clock a revenue of Rs 400 crore in next four years, Shetty said that due to the digitisation, there is a burgeoning demand for optical fibers over copper ones. “That transforms into a great wonderful opportunity,” he said.
“Our business partnership with global firms like AFL (for enterprise solutions) have enabled us to expand our services to global platforms and has led to significant business lead and revenue generation. In the aerospace & defence sector, we provide ruggedised tactical connectivity solutions for air, sea and land defence. And lastly for telecom; we manufacture telecom connectivity and fibre to home products. With the growing demand and development in all the above-mentioned sectors or industries, CIS is geared to seize the opportunities created in these areas, which will eventually help us to grow to be Rs 400 crore by 2024,” he said.