Sterlite Technologies aims for the top 3 in the world fiber optic market

NEW DELHI : Sterlite Technologies Limited expects to spend approximately 800 crore on FY23-24 on capex as it expands fiber and optical cable manufacturing capabilities amid heavy infrastructure spending by telecom operators starting to roll out 5G services from next month.

The Vedanta-owned company aims to enter the top three in the fiber optic market with the expected growth of 5G, and seeks to introduce products such as fiber to small cells and towers for rural connectivity as well as businesses, including data centers. It will also launch fiber to the home solutions during the India Mobile Congress on October 1.

Ankit Agarwal, chief executive of STL, said the company was in talks with telecom operators and businesses to roll out fiber that will support 5G services even as it seeks to participate in tenders for Bharat. Net, the government’s digital infrastructure mega project that aims to take broadband connectivity. to rural areas.

“Our ambition is to be among the top three in the world in the optics market, which is around $20 billion, so this is an opportunity for us to grow in fiber optic cable and connectivity ( company),” he told Mint. The company also manufactures fiber network deployment and systems integration equipment.

STL exports approximately 80% of its fiber optic cable and network products to global markets, including the United States and Europe, where it has a 14% market share. It is banking on the growth of the mobile consumer base worldwide, which is expected to grow from the current 700 million to more than one billion over the next four to five years.

Agarwal said fiber density in India will need to increase to meet the needs of millions of 5G mobile and home Wi-Fi users, which will provide it with another advantage in terms of revenue growth.

The company which set up data networks for the Indian armed forces, will extend its fiber capacity to 42 million km against the current 33 million km for which it will invest 500 crore in FY23, and 300 crores in FY24, Agarwal said.

“We should grow about 20% year-over-year on revenues that will come to 7,200 crore, of which our core optical business is expected to reach 20% EBIT by Q3 or Q4. The intention is to reduce the debt to sub- 3,000 crore from the current level of 3,200 crore,” he said.

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