NEW DELHI: Telecom gear maker HFCL Limited on Wednesday announced that it will build a state-of-the-art optical fiber cable manufacturing plant in Poland at a cost of Rs 144 crores (Euro 15.9 million). HFCL, in a press note, said that the expansion underscores its commitment to address increasing demand for optical fiber cable (OFC) in European markets and accelerate 5G and fibre-to-the-home (FTTH) adoption to align with Europe's vision of gigabit connectivity by 2028.
“European countries are on a significant digitization drive with national priorities such as Project Gigabit in the UK, Germany’s Gigabit Strategy 2023, France's Tres Haut Debit, and Spain's Digital 2025 Agenda, among others. This has led to increased demand for optical fiber cables in European markets such as Germany, Belgium, France, Poland etc.,” said the company.
Europe’s optical fiber cable market is projected to experience a compounded annual growth rate (CAGR) of around 4.5% over the next five years, with an expected demand of 90 mn fkm p.a. by 2028. The FTTH council estimates around 308 million homes in the EU region will have FTTH connectivity by 2028, speeding up deployment by 3-5 years. This signals a rapid expansion of FTTH networks in these areas, which will lead to increased demand for OFC.
HFCL will begin with a capacity of 3.25 million fiber kilometers, scalable to much higher capacity in the future. HFCL currently serves 60+ customers in Europe and manufactures a range of optical fiber cables, including high-fiber count micro cables, micro ducts, micromodules, FTTH, ADSS, underground and aerial cables.
The establishment of the manufacturing facility in Poland will be facilitated through the incorporation of a new stepdown subsidiary in Poland under HFCL B.V., a wholly-owned subsidiary of the company in the Netherlands.