Finolex Cables Ltd has formalized a Memorandum of Understanding (MoU) with the Department of Industries, Government of Maharashtra. This strategic partnership sets the stage for Finolex Cables’ investment of ₹580 crore, as part of the company’s expansion efforts within the optic fibre cables industry.
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 fiber-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.
Finolex Cables said that it 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, Finolex Cables Limited, Deputy CEO and CFO, Mahesh Viswanathan said “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”