EU imposes anti-dumping duty on Indian optical fibre cable companies
NEW DELHI : The European Commission has imposed anti-dumping duties ranging from 8% to 11.4% on Indian optical fibre cable (OFC) manufacturers. This includes companies such as Sterlite Technologies, Birla Cables, Universal Cables, and Vindhya Telelinks, among others, that were exporting OFC to Europe.
Following a thorough six-month investigation, which involved physical inspections at the factory premises of these companies, the Commission made the decision last week to apply duties to ten companies. However, HFCL was exempted from the duty as it was found to be adhering to fair business practices.
Sterlite Technologies Ltd and its subsidiary, Sterlite Tech Cables Solutions Ltd, face the highest anti-dumping duty of 11.4%, while Birla Cables, Universal Cables, and Vindhya Telelinks are subjected to a duty of 8.7%. Other associated companies, including ZTT India, UM Cables, Aksh Optifibre, Apar Industries, Polycab India, and Aberdare Technologies, have been levied a penalty of 9.9%, as per a notification issued by the Commission on 14 June.
The notification clarified that producers within the HFCL Group, comprising HFCL Limited and HTL Limited, are exempt from anti-dumping duties as no dumping practices were found during the investigation.
Mahendra Nahata, MD at HFCL, explained, “Dumping occurs when a producer sells exports below its cost of production or at a price lower than in the home country. Following a rigorous six-month investigation, HFCL was recognised as the only producer adhering to transparent and fair business practices.”
According to Ministry of Commerce trade data, India’s OFC exports for fiscal 2024 amounted to nearly Rs 39,600 crore, with approximately half of this total exported to major European nations such as Spain, Netherlands, Poland, Italy, and Czech Republic.
A cable industry executive noted, “Indian manufacturers benefit from a cost advantage due to cheap labour, enabling them to offer competitive pricing for their products. With fibre-to-the-home and 5G connectivity expanding rapidly in Europe and the US, these markets are lucrative for India’s exports, especially as domestic business opportunities are limited.”
The imposition of anti-dumping duty will align the export costs of Indian companies with those of European manufacturers. This adjustment is expected to foster fair competition and enable Indian companies to price their products competitively in the European markets , promoting equitable business practices, the executive explained.