HFCL Limited (HFCL) announced its strategic expansion into Europe with the setting up of a OFC manufacturing plant in Poland. This move marks a signiant milestone in the Company's global expansion strategy, aimed at addressing the increasing demand for OFC in European markets such as UK, Germany, Belgium, France, Poland etc. With an ambitious vision to capitalize on burgeoning market opportunities and fortify its position as a key player in the OFC domain, HFCL aims to ramp up share of exports in its OFC vertical revenue from the current 30% to 70% within the next 4-5 years.

Europe, with its promising growth prospects, particularly stands out as a focal point for HFCL's strategic initiatives. Europe's OFC market is projected to experience a compound annual growth rate (CAGR) of around 4.5% over the next five years with expected demand of 90 mn km p.a. by 2028. The availability of specialized skills at relatively lower labour cost than other European nations further enhances its attractiveness of being a premier manufacturing destination.

HFCL's manufacturing plant in Poland will begin with a capacity of 3.25 mn fkm and scalable up to 7 mn fkm, with initial capital outlay up to INR 144 million, fulfilling increasing OFC demand. This strategic move will not only enhance HFCL's agility but also reduce transit times by approximately six weeks, thereby enabling increase in order fulfilment capacity. The establishment of the manufacturing facility in Poland will be facilitated through the incorporation of a new stepdown subsidiary in Poland under HFCL B.V., a wholly-owned subsidiary of the Company in the Netherlands.