HFCL Ltd announced the signing of a three-year agreement with a global multinational corporation to supply Optical Fiber Cables (OFC) worth approximately 244 million US dollars, equivalent to about 2329 crore Indian rupees. This information was disclosed by the company in its Tuesday filing with the stock exchange.
The cable supplies will be carried out through an overseas subsidiary fully owned by HFCL. The contract stipulates the provision of high-quality optical fiber cables with a large number of fibers, manufactured according to the customer's requirements.
The company did not disclose the name of the client with whom the contract was signed.
The supply will last until December 2029
According to the terms of the agreement, from 2027 to 2029, HFCL will supply 'multi-million kilometers' of high-quality, high-density fiber optic cables annually. The contract is valid until December 2029.
HFCL noted that this agreement has strengthened its ability to enter into strategic long-term partnerships and reflects its technological capabilities, operational performance, and customer relationships. The company emphasized that only a limited number of global manufacturers possess the necessary technological capabilities, production precision, and scale to produce such complex OFC products.
Furthermore, it was stated that this contract will enhance HFCL's competitive position and prospects for long-term growth in the global OFC market. HFCL also clarified that its promoter, promoter group, and affiliated companies have no interest in the organization awarding the contract, and that the deal is not considered a related-party transaction according to the submitted report.
At the time of publication, HFCL Ltd shares closed 1.03 percent lower, at 248.85 rupees on Monday.