HFCL raises capex to Rs 1,800 cr to boost optical fibre production

New business data points to the fact that Telecom gear maker HFCL has enhanced capital expenditure to Rs 1,800 crore to gain production capacity of optical fibre, optical fibre cable and preform used for making these products, a firm filing stated on Monday.

The firm board has approved additional capacity expansion of 46 lakh fibre kilometres (Kms) per annum for optical fibre, 56.4 lakh fibre Kms per annum for optical fibre cable and 300 metric tonnes (MT) per annum for preform, the filing stated.

"The additional capital expenditure for the proposed capacity expansion is estimated at approximately Rs 820 crore. The investment will be funded through an appropriate mix of internal accruals, proceeds from the preferential offering of warrants already issued to the promoter, promoter group entity, borrowing from financial institutions…," the filing stated.

HFCL stated that the proposed capacity expansion is in addition to capex of Rs 980 crore already approved by the board "taking the total scheduled capital expenditure for these capacity enhancement initiatives to approximately Rs 1,800 crore." "Upon completion of the capacity expansions, HFCL's manufacturing capacities will gain to 43.1 million fibre kms per annum for optical fibre, 62 million fibre kilometres per annum for optical fibre cable and 600 MT per annum for preform," the filing stated.