HFCL Limited has entered into a five year supply agreement with a customer for the supply of high-quality, high-fibre-count Optical Fiber Cables (OFC), through its overseas wholly owned subsidiary. The total potential value of the contract over its tenure is estimated at USD 1,100 million (INR 101,590 million), based on prevailing selling prices of OFC products being supplied. This agreement marks a significant milestone, being the first instance in the Company?s history of entering into a long-term, multi-year OFC supply arrangement of this nature.
Minimum quantity of multi-million fiber kilometres (fkm) of high-quality, high-fibre-count OFC to be supplied in each Calendar Year starting from Calendar Year 2026 to Calendar Year 2028, which shall automatically extend to two additional calendar years i.e. Calendar Year 2029 and Calendar Year 2030. Purchase orders will be released periodically during the contract period based on project-wise and specification-wise requirements. Under the terms of the agreement, the wholly owned subsidiary is also eligible to supply OFC to the assignees and authorised affiliates of the customer.
The order has been awarded by an international entity. The nature of the contract is supply of Optical Fiber Cables as per customer specifications. The time period by which the contract is to be executed is up to December 2030.
The broad consideration or size of the contract is USD 1,100 million (INR 101,590 million).
