Optical fiber cable component maker Runaya plans to double its production capacity, increase exports, and boost revenue to Rs 500 crore over the next 3-4 years. This growth is driven by the rollout of 5G, increased tower fiberization, home broadband connections, and the government’s Bharatnet Project.
“Since 2019, we have invested Rs 60 crore in manufacturing FRP (fibre-reinforced polymer) rods used in optical fibers,” said Naivedya Agarwal, CEO and co-founder of Runaya. “We currently have a revenue of Rs 100 crore and aim to grow this to Rs 500 crore in the next 3-4 years.”
The shift to 5G and related infrastructure upgrades are driving this demand, with the global fiber optic cable market expected to grow from $9.2 billion in 2021 to over $12 billion by 2024, a compound annual growth rate (CAGR) of 10%, according to company estimates.
“In India, ongoing fiberization and the rapid 5G rollout will triple fiber demand, reaching about 60 million fiber kilometers annually,” Agarwal said. “In the next four to five years, we expect India to have 490 million 5G users and 100 million fiber-connected homes, with BharatNet connecting 600,000 villages.”
Runaya was founded in 2019 by Naivedya and Annanya Agarwal, sons of Vedanta Limited Vice Chairman Navin Agarwal. It operates independently and runs production plants in Silvassa, Dadra and Nagar Haveli, with a current capacity of 1.5 million kilometers of FRP manufacturing. The location near Mumbai, Ahmedabad, and Mundra ports benefits cable exporters, positioning Silvassa as a cable production hub in India. Runaya’s domestic customers include Sterlite Technologies, Birla Cables, and ZTT, with exports making up 75% of its sales.
“Globally, FRP, telecom, and fiber cable are separate value chains. Large OEMs don’t have FRP availability, but in India, major telcos and cable manufacturers are integrated with FRP,” Agarwal said, noting that APAC, Europe, and the Americas are key markets.
Typically, 85-90% of a cable’s cost is fiber, while the remaining components make up only 2% of the bill of materials. “From an export perspective, this 2% segment is a lucrative opportunity,” he said, adding that Runaya is also exploring FRP rod use for windmills and ground support in tunnels and mines.
Digitization has helped Runaya reduce scrap rates, track material flow, and increase production speed and output. “We are the only FRP manufacturer globally with an entirely AI-based quality system, where cameras can automatically detect defects without human intervention,” he said.
Besides telecom, Runaya has a sustainability business and an infrastructure arm. It has a 51:49 joint venture with Australia-based Minova, a global leader in ground support solutions for infrastructure projects in underground mines. “As their operating partners, we manufacture in Bhilwara and are the exclusive distributors for their entire portfolio to companies like Larsen and Toubro in India.”
Overall, Runaya closed the previous fiscal year with revenues of Rs 500 crore and expects to reach Rs 1,200 crore by the end of fiscal 2024. However, challenges such as high raw material costs, logistical issues, and economic fluctuations pose potential hurdles. “Additionally, unfair trade practices, including dumping low-quality fiber at predatory prices, threaten the stability of the domestic market,” Agarwal noted.
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