HFCL Cleared of Dumping Allegations by European Commission

On June 17, 2024, HFCL Limited (HFCL) announced in a stock exchange filing a significant decision made by the European Commission on June 14, 2024. The decision concluded that HFCL is the sole Indian company not involved in dumping Optical Fiber Cable (OFC) in European markets. Consequently, a provisional anti-dumping duty has been imposed on all other Indian OFC manufacturers, making HFCL the only Indian OFC manufacturer exempt from these duties by the European Commission.

Anti-dumping laws are usually used to shield domestic industries from unfairly priced imports.

On October 3, 2023, Europacable, representing the European optical fibre cable industry, filed a complaint alleging that OFC imports from India were being dumped and harming the European industry. Following this, the European Commission conducted a comprehensive investigation into the products, infrastructure, and financial data of all relevant Indian OFC manufacturers.

In mid-November 2023, Indian OFC manufacturers received notices from the European Commission requesting initial sales data from export producers within a week. As required by the European Commission, extensive data on manufacturing, sales, exports, and pricing for the period of October 2022 to September 2023 was provided within a month by the company. Additionally, data for the previous three financial years and detailed records for the investigation period were requested.

In April of this year, the European Commission meticulously verified all information and data provided by HFCL through intensive validation at the premises of the relevant Indian manufacturers. Officials were sent to India to examine whether Indian manufacturers were undercutting prices to sell products in Europe compared to domestic sales prices below their cost.

After a thorough investigation, the European Commission ruled in June 2024 that anti-dumping duties would not apply to the HFCL Group’s exported products, which include HFCL Limited and HTL Limited, as no evidence of dumping was found. However, anti-dumping duties were imposed on all other Indian OFC manufacturers, who have the right to legal recourse. This decision by the European Commission underscores HFCL’s transparent and fair business practices.

HFCL’s products are preferred by European telecom operators for their quality, reliability, safety standards, commercial viability, and sustainable supply, essential for constructing Europe’s telecom infrastructure. The company has been operating in Europe for over a decade, maintaining long-term engagements with leading telcos and ISPs (internet service providers) across many European countries.

Speaking of this achievement, the Managing Director of HFCL, Mr Mahendra Nahata, said, “This decision is a huge achievement for us and speaks volumes about the trust that we have garnered globally for our fair-trade practices and transparency of processes. We have always focused on delivering high-quality, flexible and cost-effective solutions, backed by our commitment to innovation and excellence in the telecommunications industry. We firmly believe that this decision will enable us to play a central role in Europe’s digital transformation.”

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.