HFCL Limited’s stock reached a new 52-week high, climbing over 3% to Rs 115, following their announcement of a new optical fiber cable facility in Poland. The company’s move marks a strategic expansion into the European market. This was announced on February 21, highlighting HFCL’s commitment to growing its international footprint and enhancing its manufacturing capabilities.
The new facility, set up as a step down subsidiary under HFCL B.V. in the Netherlands, represents a significant step for HFCL in bolstering its European presence. This expansion is expected to substantially boost sales from both new and existing customers. Additionally, it aims to increase HFCL’s export revenue in the OFC sector from 30% to 70% in the next 4-5 years.
The decision comes amid projections of a 4.5% annual growth in Europe’s OFC market over five years, with a demand of 90 million fkm annually by 2028. The Poland facility, costing Rs 144 crore, starts with a 3.25 million fkm capacity, expandable to 7 million fkm. Mahendra Nahata, HFCL’s managing director, emphasized the strategic importance of the Polish expansion for meeting the rising European demand. By 2:45, HFCL’s stock was trading at Rs 112 on the NSE, marking a significant increase since the year’s start.
