"Improving performance also rests a lot on the company’s Rs 1,500-crore bet on capacity expansion that is nearing completion. So instead, the company is looking to expand overall market itself, says Agarwal.The Indian market for optical fibre is only 10% of China’s, says Agarwal, to indicate the growth potential. He also gives other examples, like how 70-80% of Reliance Jio’s telecom towers are connected by optical fibre but for rivals such as Airtel or Vodafone Idea with older networks, this number is lower and presents an opportunity.Agarwal also indicates that adoption of new technologies such as Internet of Things or 5G will mean a deeper requirement for a mesh of optical fibre that will connect hubs. KRChoksey on July 24 had valued Sterlite Tech scrip at Rs 232. Agarwal says optical fibre is the only technology product that India sells in China.But the pricing pressure of Chinese fibre continues to pose a danger.

Source: Economic Times September 28, 2019 17:37 UTC