Finolex Cables to invest Rs 580 crore to expand optic fibre cables capacity

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Finolex Cables to invest Rs 580 crore to expand optic fibre cables capacity

Finolex Cables to invest Rs 580 crore to expand optic fibre cables capacity

Industry News
Feb 19,24

This expansion in Maharashtra encompasses the installation of fibre draw towers and the implementation of backward integration for the production of glass preforms, crucial in the fibre drawing process.

Finolex Cables to invest Rs 580 crore to expand optic fibre cables capacity

Pune:

Finolex Cables Ltd, one of India’s leading electrical and telecommunication cable companies, will invest Rs 580 crores for expanding its optic fibre cables (OFC) production capacity in Maharashtra. For this, the company has signed a Memorandum of Understanding (MoU) with the Department of Industries, Government of Maharashtra.

The envisioned investment is strategically aligned with the Prime Minister’s vision of providing last-mile optical fibre-based connectivity to every village in the country. Anticipating a surge in demand, Finolex Cables is positioning itself to cater to the increasing need for optic fibre cables (OFC), fueled by the nationwide 5G roll-out and the growing requirement for fibre-to-home connectivity.

Highlighting Finolex Cables' commitment to fortifying its capabilities and product range in the optic fibre cables sector, the company, currently possessing a fibre drawing capacity of 4 million fibre km per year and a cabling capacity of 8 million fibre km per year, is set to establish an additional plant dedicated exclusively to fibre optic cables. This expansion initiative encompasses the installation of fibre draw towers and the implementation of backward integration for the production of glass preforms, crucial in the fibre drawing process. Notably, this aligns with the goals of the Government of India’s Make in India program.

In a groundbreaking move, Finolex Cables aims to become the second company in the country to manufacture glass preforms, a vital component for optical fibre production. The proposed upgrade will see the Draw Tower capacity doubling to 8 million fibre km per year, pushing the fibre optic cables' annual capacity to 10 million fibre km from the current 8 million fibre km. This expansion initiative is expected to generate direct and indirect employment opportunities for 400 plus individuals.

Under the terms of the MoU, the Government of Maharashtra has committed to actively supporting Finolex Cables Limited in obtaining the necessary registrations and approvals from the relevant state departments. This collaboration is anticipated to facilitate a seamless and successful implementation of Finolex Cables' ambitious expansion project, contributing significantly to the region's economic development and employment opportunities.

Speaking on this occasion, Mahesh Viswanathan, Deputy CEO & CFO, Finolex Cables Limited, expressed enthusiasm about the expansion plans and the collaborative effort with the Government of Maharashtra. “This strategic investment reinforces our commitment to contribute to the state's economic development and create employment opportunities. We are grateful for the support from the Government of Maharashtra, and we look forward to a seamless and successful implementation of our expansion project,” he said.

In order to augment the OFC business further, the company has also opened EPC division for executing orders for laying fibre -optic cable networks in various locations all over the country. The business has already commenced in Gujarat and is expected to be expanded to other geographies soon.

Finolex Cables is rapidly transforming from a manufacturer of wires and cables into an electrical products company, by expanding its product portfolio to market products like lighting, water heaters, fans, switches, switchgear, and electrical conduits. This reinforces its reputation of offering innovative products that cater to the needs of modern households.

The company started its operation with the manufacture of PVC-insulated electrical cables for the automobile industry. Besides a wide variety of wires & cables, Finolex Cables also manufactures lighting products, electrical wiring accessories, switchgear, fans, and water heaters. The company has manufacturing facilities at Pimpri and Urse in Pune as well as at Goa & Uttarakhand.