1. Sterlite Technologies to invest Rs 1,200 cr in new optical fibre plant

Sterlite Technologies to invest Rs 1,200 cr in new optical fibre plant

Sterlite Technologies Limited will be setting up a new greenfield plant to expand optical fibre capacity to 50 million fibre km riding on the back of unprecedented growth in demand for fibre in India and across the world.

By: | Pune | Updated: April 27, 2017 3:37 AM
To meet the demand in both the domestic as well as global markets, the company is investing in expanding capacity. (Representative Image: Reuters)

Sterlite Technologies Limited will be setting up a new greenfield plant to expand optical fibre capacity to 50 million fibre km riding on the back of unprecedented growth in demand for fibre in India and across the world. Anand Agarwal, CEO, Sterlite Tech, said the company will be investing around Rs 1,000 crore to Rs 1, 200 crore in the new plant. The company will decide on the location of the new plant in the next three months, Agarwal said.

Last year the company had raised the optic fibre capacity from 22 million fkm to 30 million fkm at its existing facilities in Aurangabad. The existing plant has reached maximum capacity. To meet the demand in both the domestic as well as global markets, the company is investing in expanding capacity. “Last five years we have grown top end at 25% while bottom line has grown at 38%,” Agarwal said. Around 70% of the company’s turnover comes from products and 30% from software services.

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There is demand for high speed, high capacity and highly responsive data networks, thanks to proliferation of Cloud, IoT, Artificial Intelligence, big data, new devices and data centres that are driving the growth, Agarwal said. “Globally only eight companies make this product and of these we are the only one to have a fully integrated product offering from silicon to fibre and offer software and integration services along with it. The company has in hand orders worth Rs 3,018 crore out of which Rs 1,000 crore are global orders. And, global sales has jumped to 70% in FY17, Agarwal said. Share of global sales have gone up to 37% in FY17 compared to 26% the previous year. Sterlite in data consumption will continue to grow with newer technologies and demand for fibre for the next three to five years. Sterlite Tech designs, builds and manages networks for global service providers, smart cities, rural broadband and defence through products (optical fibre, optical fibre cables and data cables), services (system and network integration) and software offerings. Sterlite Tech reported a 16% growth in PAT to Rs 55 crore while revenue grew by 15% to Rs 707 crore during Q4FY17.

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