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.