HFCL to invest Rs 950 cr in optical fibre cable production in next 2 years: MD

Business To Business, Hyderabad, 08^th July, 2026:    Telecom equipment manufacturer HFCL will invest approximately ₹950 crore over the next two years to expand its optical fibre and optical fibre cable manufacturing capacity, as the company seeks to capitalise on rising demand driven by the rapid growth of data centres and digital infrastructure.
Announcing the launch of HFCL's new data centre solutions portfolio, OptiQ AI, Managing Director Mahendra Nahata said the investment will strengthen the company's manufacturing capabilities across the optical fibre value chain.
Nahata said the capital expenditure will be directed towards expanding the production of optical fibre, fibre optic cables and backward integration facilities, including the manufacture of preforms—the primary raw material used in optical fibre production.
"We are expanding our capacities for manufacturing fibre, fibre optic cable, as well as integration, backward integration in terms of manufacturing of preforms, which is the main raw material for manufacturing fibre. Total capex will be about ₹950 crore, which will be spent in the next two years," he said.
He noted that demand for optical fibre cables is increasing significantly, particularly in the data centre segment in the United States, as investments in artificial intelligence, cloud computing and high-speed digital connectivity continue to accelerate worldwide.
The launch of the OptiQ AI portfolio marks HFCL's entry into integrated data centre connectivity solutions, positioning the company to cater to the growing requirements of hyperscale data centres and enterprise customers.
The planned investment is expected to enhance HFCL's production capacity, strengthen its supply chain through greater backward integration and reinforce its position in the global optical fibre industry amid rising demand for high-speed communication infrastructure.