The expansion will double the draw tower capacity of Finolex Cables from the current 4 million fibre km per year to 8 million fibre km per year, while its annual cabling capacity will increase from 8 million fibre km to 10 million fibre km.
Apr 4, 2024
Finolex Cables has signed a Memorandum of Understanding (MoU) with the Maharashtra Industries Department to invest INR 580 crore for the expansion of its optic fibre cables operations and for setting up a new plant exclusively for optic fibre cables (OFC).
The proposed investment is strategically aligned with the Prime Minister’s vision of providing last-mile optical fibre-based connectivity to every village in the country.
As per a statement issued by the company, Finolex Cables is anticipating a surge in demand led by the nationwide 5G roll-out and the growing requirement for fibre-to-home connectivity. It currently has a draw tower capacity of 4 million fibre km per year and annual cabling capacity of 8 million fibre km.
After the commissioning of the new plant, Finolex’s draw tower capacity will double to 8 million fibre km per year and its fibre optic cables’ annual capacity will increase to 10 million fibre km.
The statement did not specify where the project will come up or when the work will begin and be completed. This expansion initiative encompasses installation of fibre draw towers and the implementation of backward integration for producing glass pre-forms, crucial in the fibre drawing process.
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With this, Finolex Cables will become the second company in the country to manufacture glass preforms, a vital component for optical fibre production. This expansion will generate over 400 direct and indirect employment opportunities, said Finolex Cables Deputy CEO Mahesh Viswanathan.
The 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, he added.
Under the MoU, the government of Maharashtra will actively support the company in obtaining the necessary registrations and approvals from the relevant state departments.
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In order to augment the OFC business further, Finolex has also opened an EPC (Engineering, Procurement, Construction) 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.
