Domestic telecom gear maker, HFCL plans on doubling its export revenue with an extensive portfolio of 5G network products. HFCL, which has been a major player in India for providing and setting up optic fibre networks for telecom operators and network operators, wants further expansion into network equipment or 5G network products. In an exclusive interaction, Mahendra Nahata, Managing Director of HFCL noted the company plans on increasing its export revenue by 2.5 times in FY23. HFCL’s portfolio of 5G network products will play a major part in increasing sales. Export of 5G network products will start from the beginning of next calendar year according to Nahata.

As the worldwide removal of proprietary hurdles on network technology through Open Radio Access Network (Open RAN) allows smaller players to enter the telecommunication equipment market, HFCL is also eyeing this as an opportunity to deepen its footprint in the global market. Earlier this month, HFCL entered into a collaboration with Qualcomm to strengthen its product portfolio. Nahata notes HFCL’s push for indigenous design will allow the the company to get global clients.

ALSO READ: HFCL to build portfolio of 5G products for Indian, foreign markets

Revenue model and PLI scheme

HFCL also plans on utilising its lineup of 5G products to shift its revenue model, “This year we expect 20 per cent of our revenue to come through exports, this will only increase as we sell more network products. We are also focusing our dependency on project-based revenue, a majority of our revenue comes through network projects we take. This year our product-based revenue will be 43 per cent and subsequently, it will increase to 58-59 per cent. Our idea is to increase our revenue from products and not from projects, especially from the products we design.”

While the government is trying to incentivise indigenous design by offering Indian telecom gear makers a design-led production-linked incentive (PLI) scheme, HFCL has not applied for the scheme. HFCL presently is the beneficiary of the original PLI scheme for network vendors, however, Nahata notes the company will only meet the PLI targets from FY24.

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BharatNet tender

HFCL is also a contender for bidding for the BharatNet tender, however for this as well, Nahata notes HFCL will only bid if the tender is for building the network and not managing the network as well.

ALSO READ: DoT plans new model to rope in private players for BharatNet project

BharatNet tender, which was floated earlier this year saw no bidders, which is why the Department of Telecommunications will be re-evaluating the tender and releasing it in September.

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