HFCL has stepped up its push into high-capacity optical fibre cable (OFC) manufacturing, as demand shifts rapidly from traditional telecom networks to data centres and artificial intelligence infrastructure.
During a recent visit by institutional investors to the company’s Hyderabad facility, senior executives outlined plans to expand capacity from 30 million fibre kilometre (f.km) to 40 million f.km by December 2026. The move is aimed at meeting rising global demand driven by 5G rollouts, future 6G development, and hyperscale data centres.
The plant is already producing high fibre count cables of up to 3,456 fibres and has developed 6,912 fibre cables, currently awaiting certification. These products, along with Intermittently Bonded Ribbon (IBR) cables, command more than double the realisation of conventional cables, reflecting a broader industry shift toward high-value solutions.
Industry estimates suggest that AI and data centre applications could add 150–200 million f.km to global fibre demand, on top of baseline telecom needs. In some cases, supply disruptions have pushed spot market prices to three to five times typical levels.
HFCL is also strengthening its cost competitiveness through backward integration, manufacturing around 80% of its raw materials in-house. A new preform facility, backed by an investment of ₹580 crore, is expected to further reduce costs and improve supply stability.
The company is positioning itself as a technology leader, particularly in IBR cables, where it ranks among the top global players. Most of its output consists of bend-insensitive fibre suited to dense data centre environments, while ongoing research includes next-generation hollow core and multi-core fibres.
Exports are expected to benefit from trade restrictions on Chinese manufacturers in key markets such as the United States and the United Kingdom, potentially creating further opportunities for growth.
