HFCL has signed a five-year agreement worth approximately Rs 10,159 crore with a global multinational corporation to supply high-quality, high-fibre-count optical fibre cables (OFC).
An Indian technology company operating in the telecom and defence sectors, HFCL in its regulatory filing said that the contract will be executed through the company’s overseas wholly owned subsidiary.
The total potential value of the agreement is estimated at about $1.10 billion, which is roughly Rs 10,159 crore based on current selling prices of OFC products.
Contract to run till 2030
Under the agreement, the company will supply a minimum quantity of multi-million fibre kilometres (fkm) of optical fibre cables every year. The supply will begin in calendar year 2026 and continue till calendar year 2028.
The contract will automatically extend for two additional calendar years, covering CY29 and CY30. Overall, the agreement will run until December 2030.
Purchase orders will be released periodically during the contract period based on project requirements and product specifications.
Company signs its first large-scale multi-year OFC agreement
The agreement also allows the company’s wholly owned subsidiary to supply optical fibre cables to the customer’s authorised affiliates and assignees during the contract period.
The company said this is the first time it has entered into a long-term, multi-year OFC supply agreement of this scale.
Deal strengthens company’s position in global OFC market
The company noted the agreement is important for the company because only a limited number of manufacturers globally have the technology capability, manufacturing precision, and scale required to produce complex high-fibre-count optical fibre cables.
“Given that only a limited number of manufacturers globally possess the requisite technology depth, manufacturing precision, and scale required for such complex OFC products, this engagement materially strengthens the Company’s competitive positioning and reinforces its long‑term growth outlook in the global OFC market”.
HFCL share price
The share price of HFCL has gained 12.82% in past three months.