HFCL Limited Expands Global Presence with HFCL UK Limited

HFCL Limited announced in a stock exchange filing that, to cater to the global demand for its products and expand its business operations overseas, it has taken a significant step forward by establishing HFCL UK Limited in the UK.

This new entity is a wholly-owned subsidiary of HFCL B.V., which is itself a wholly-owned subsidiary of HFCL Limited, making HFCL UK Limited a step-down wholly-owned subsidiary of the Company.

HFCL UK Limited has a share capital of GBP 1, divided into one share of GBP 1 each. The entity belongs to the telecom industry, specifically focusing on the manufacturing and trading of optical fibre, optical fibre cables, telecom and networking products, and other related activities. By incorporating a company in the UK, HFCL aims to better meet the global demand for its products, thereby enhancing its business operations and strengthening its international presence. This strategic move aligns with HFCL’s broader objective of increasing its export market revenue.

The decision to establish HFCL UK Limited is part of HFCL’s strategy to augment its global footprint and explore new growth opportunities. The company’s expansion into the UK market is expected to facilitate a more robust engagement with the European market, leveraging the UK’s strategic location and business-friendly environment. This move is also anticipated to enhance HFCL’s competitive edge in the telecom industry, allowing it to deliver its advanced optical fibre and telecom products to a broader customer base.

The initial cost of establishing HFCL UK Limited involved the subscription of one share at GBP 1 by HFCL B.V. This represents a 100% shareholding by HFCL B.V., ensuring full control over the new subsidiary. Although HFCL UK Limited has been formally incorporated, it is yet to commence its business operations in the UK. Establishing this subsidiary marks a preparatory phase to set up a robust operational framework that will enable the company to effectively penetrate the UK and European markets.

About HFCL Limited

HFCL Ltd (Himachal Futuristic Communications Limited) is a diverse telecom infrastructure company that develops telecom infrastructure, integrates systems, and manufactures and supplies high-end telecom equipment, optical fibre, and optic fibre cable (OFC).

On July 9, 2024, the share price of HFCL Limited opened at ₹132.00, touching the day’s low at ₹130.05, as of 10:11 AM on the NSE.

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.