Indian tech company HFCL Limited has announced its entry into the European market with the establishment of a cutting-edge Optical Fiber Cable (OFC) manufacturing plant in Poland. This strategic move positions HFCL to cater to the rising demand for OFC in key European markets, including France, Poland, UK, Germany, and Belgium.
Market Expansion and Revenue Goals: HFCL aims to increase the share of exports in its OFC vertical revenue from the current 30% to a substantial 70% within the next 4 to 5 years. The decision to set up a manufacturing unit in Poland is aligned with the company’s strategy to capitalize on the projected 4.5% Compound Annual Growth Rate (CAGR) in Europe’s OFC market over the next five years. The expected OFC demand in Europe is anticipated to reach 90 million fkm p.a. by 2028.
Strategic Positioning and Regulatory Compliance: With over 308 million homes in the EU region expected to have Fiber-to-the-Home (FTTH) connections by 2028, HFCL sees Poland as an attractive option for local production. Setting up the plant in Poland allows HFCL to leverage specialized skills at a relatively lower cost and be agile in meeting regulatory shifts while better serving existing customers.
Capacity and Investment: The HFCL plant in Poland will initially operate with a capacity of around 3.25 fkm, scalable up to 7 million fkm. The initial capital outlay for the plant is projected to be up to Rs 144 crore.
Mahendra Nahata’s Perspective: Mahendra Nahata, Managing Director of HFCL, highlighted the company’s commitment to meeting evolving customer needs. He emphasized that the move into Poland not only provides access to the growing European market for optical fiber cable but also enhances agility and responsiveness in meeting increasing demands. Nahata noted that the strategic expansion aligns with Europe’s vision for gigabit connectivity, showcasing HFCL’s commitment to Europe’s digital future.
