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HFCL Exempted from EU Anti-Dumping Duties on Indian Optical Fibre Cables

Updated: Jun 19, 2024 02:42:44pm

HFCL Exempted from EU Anti-Dumping Duties on Indian Optical Fibre Cables

New Delhi, Jun 19 (KNN) Indian telecom equipment maker HFCL Ltd said on Tuesday it has become the only domestic manufacturer of optical fibre cables (OFC) to be exempted from anti-dumping duties recently imposed by the European Commission on such imports from India.

The European Union had launched an investigation last year amid fears that Indian OFC exports to the bloc were being "dumped" at unfairly low prices, causing injury to European manufacturers.

After a detailed probe, the EU found no evidence of dumping by HFCL and exempted the company from the new duties.

Shares of HFCL surged over 5 per cent to 129 rupees on Tuesday, marking the ninth straight session of gains. Over 3.9 million shares changed hands, the highest traded volume for HFCL in nine days.

"This decision speaks volumes about the trust we have garnered globally for our fair practices," said Mahendra Nahata, managing director of HFCL, which specialises in telecom network gear including OFC.

With the EU exemption, HFCL aims to sharply increase its export of OFC to Europe from the current 30 per cent of sales to 70 per cent within four to five years, Nahata told reporters.

HFCL plans to set up a new OFC manufacturing facility in Poland to capitalise on the expected 4.5 per cent annual growth in European demand.

Poland was chosen for its incentives, lower costs, strong connectivity and availability of skilled labour compared to other EU nations, the company said in February.

To further drive growth, HFCL is developing an enhanced portfolio of defence communication products to target both global and domestic military opportunities, the company stated.

While the telecom sector still accounts for the bulk of HFCL's revenue, the defence and railway businesses are also key contributors.

Some other Indian OFC makers affected by the EU duties are pursuing legal appeals against the trade restrictive measure, according to company statements.

(KNN Bureau)


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