Sterlite invests to expand fiber optics manufacturing capacity to 20 million km by 2011

Sterlite Technologies Ltd. (Pune, India) a global provider of transmission solutions for the telecom and power industries, says its board of directors has approved the expansion of the company's annual optical fiber manufacturing capacity to 20 million km, which would position Sterlite among the top three manufacturers globally.

Sterlite's current facility of 6 million km is already under expansion to 12 million km; the enhanced capacity of 20 million km would be functional by 2011, and will require a capital outlay of Rs. 250 Crores (US $52 million).

The expanded facility will be capable of manufacturing the company's existing range of optical fiber products as well as new products that would cater to high-bandwidth applications required by global fiber optics markets. The expansion would be done by through a combination of brown-field expansion at Sterlite's existing facility in Aurangabad, and a green-field setup at a location soon to be determined.

"Sterlite continues to be bullish on the optical fiber industry in Asia and globally. We would continue to leverage our global customer relationships and global presence, as well as the unique knowledge, expertise and infrastructural base created over the last 15 years in this business, to enhance our global market share in the growing optical fiber market," says Sterlite CEO and director Dr. Anand Agarwal.

Partly towards meeting the cost of this project, the board also approved the issue of up to 73,00,000 warrants on preferential basis to the promoters and entity/entities of promoter group, at a price to be determined in accordance with the Guidelines for Preferential Issues contained in Chapter XIII of the Securities and Exchange Board of India (Disclosure and Investor Protection) Guidelines 2000, entitling the warrant holders to apply for equivalent number of fully paid equity shares of the company subject to approval of the shareholders at the general meeting of the company and other necessary statutory approvals. Each warrant will be convertible in one equity share of Rs 5 each within a period of 18 months from the date of allotment. The proceeds of such warrants, as converted, would be used towards these growth projects and for general corporate purposes.

For more information see Sterlite Technologies' website.