Which Companies Manufacture 5G Telecom Equipment in India?

As India moves forward with its 5G rollout, the need for advanced telecom equipment is more critical than ever.

5G technology promises to revolutionize internet speeds and connectivity, impacting everything from everyday smartphone use to sophisticated industrial applications.

Telecom equipment is essential for building and maintaining the infrastructure that supports this next-generation technology.

With the rapid expansion of 5G networks, reliable and high-quality equipment has become a cornerstone of this transformation.

This growing demand has led to the rise of several Indian companies specializing in 5G telecom equipment.

Today, we look at all those companies which are crucial for the 5G revolution in India. These firms are at the forefront of producing the technology that will power India's digital future.

# Sterlite Technologies

Founded in 2000, Sterlite Technologies is a prominent name in the telecom sector, specializing in optical fiber cables and network solutions.

The company has become a key player in supplying the essential fiber that forms the backbone of 5G networks.

Beyond just components, Sterlite also provides end-to-end solutions, including network design and deployment services, integrating photonics systems for large-scale telecom and data networking projects.

In 2023, Sterlite secured major contracts with telecom giants such as Vodafone Idea and Reliance Jio for supplying optical fiber cables critical to their 5G infrastructure.

The company had an impressive order book at the end of June 2024 quarter. Its stock price has also seen a rise, fuelled by the heightened demand for its 5G-related products.

As part of its expansion plans, Sterlite Tech is investing Rs 2 billion (bn) to enhance its fiber production capacity, aiming to expand its reach both in India and internationally.

The company plans to diversify its offerings by targeting rural connectivity and expanding into global markets. It anticipates a 15% increase in revenue next year as 5G infrastructure continues to grow.

For more details, see the Sterlite Tech company fact sheet and quarterly results.

# HFCL Ltd. (Himachal Futuristic Communications)

Established in 1987, HFCL has been a significant player in India's telecom equipment manufacturing sector.

Initially known for its fiber optic cables, HFCL has recently shifted focus to 5G technology, developing products like 5G routers and networking equipment.

HFCL has collaborated with Qualcomm to develop 5G millimeter-wave products crucial for high-speed communication. The company also secured contracts with Reliance Jio for supplying fiber optic cables for its 5G rollout.

The company is engaged in the BharatNet project, which aims to enhance broadband connectivity in rural India.

HFCL has invested Rs 7 bn in a new facility dedicated to 5G equipment manufacturing. It plans to double its revenue from 5G products in the next three years by expanding internationally and broadening its range of 5G solutions.

The company set ambitious 2027 goals for revenue, profitability, and market presence. It has a strategic roadmap in place to achieve Rs 90-100 bn revenue range by boosting efficiency and expanding reach.

For more details about the company, check out HFCL factsheet and quarterly results.

# Tejas Networks Ltd.

Founded in 2000, Tejas Networks is a prominent player in India's telecom sector, specializing in designing and producing telecom networking equipment.

The company focuses on providing high-speed 5G backhaul solutions, essential for transferring data from mobile towers to the core network.

Recently, Tejas Networks was awarded a Rs 10 bn contract to supply 5G backhaul solutions to BSNL. It has also partnered with Intel to develop custom 5G solutions.

The company is working on large-scale projects, supplying 5G equipment to telecom operators in India and abroad, particularly in Southeast Asia and Africa.

Tejas Networks plans to expand its global presence and focus on providing cost-effective 5G solutions to developing markets, expecting a 20% revenue growth over the next two years.

With the biggest order in its history received from BSNL, the performance of Tejas Networks is expected to turn around.

For more details, see the Tejas Networks company fact sheet and quarterly results.

# Indus Towers Ltd.

Founded in 2007, Indus Towers is India's largest telecom tower company.

Although it does not manufacture telecom equipment directly, its network of towers is crucial for deploying 5G networks. Without these towers, telecom operators would struggle to provide 5G services.

Indus Towers has announced plans to upgrade its existing tower network to support 5G equipment. The company is collaborating with telecom operators like Bharti Airtel and Reliance Jio to roll out 5G services.

The company is expanding its network with 5,000 new towers across India, designed specifically for 5G antennas. It has invested Rs 5 bn to upgrade its existing infrastructure to be 5G-ready.

Indus Towers is aiming to add 10,000 new towers over the next three years and expecting a 12% rise in revenue next year as 5G services become more widespread.

For more details, see the Indus Towers company fact sheet and quarterly results.

# ITI Ltd.

Established in 1948, ITI is one of India's oldest telecom equipment manufacturers. As a government-owned company, ITI has been instrumental in supplying telecom gear to the Indian market for decades.

With the rise of 5G, ITI has expanded its offerings to include 5G routers, switches, and other networking equipment.

ITI recently partnered with Indian telecom operators to supply 5G routers and networking devices. The company has invested in expanding its production capacity to meet growing demand.

ITI is involved in the BharatNet project, providing 5G routers and switches to enhance broadband access across rural India. It is also participating in smart city initiatives, offering 5G-enabled solutions.

The company plans to collaborate with international partners to boost its 5G offerings and expects to double its 5G-related revenue over the next three years.

To know more, check out ITI's financial factsheet.

# Bharti Airtel Ltd.

Founded in 1995, Bharti Airtel is one of India's largest telecom service providers.

While it does not manufacture 5G equipment, the company plays a vital role in deploying 5G services across the country. Airtel has invested heavily in building the necessary infrastructure for 5G, including partnerships with equipment manufacturers.

Airtel has been conducting 5G trials in cities like Delhi, Mumbai, and Kolkata. The company has partnered with global players like Ericsson and Nokia to build its 5G infrastructure.

The company aims to cover the entire country with 5G by 2025, with significant investments planned in both urban and rural infrastructure.

Earlier in May this year, Airtel also strengthened its partnership with Google Cloud to offer cloud-based solutions to businesses in India.

This collaboration aims to drive cloud adoption and modernisation, providing Airtel's customers access to a wide range of advanced cloud services from Google Cloud.

Bharti Airtel is investing heavily in FTTH deployments to provide high-speed broadband connectivity to homes and businesses, driving digital inclusion and enhancing customer experiences.

For more details, see the Bharti airtel company fact sheet and quarterly results.

# Tata Communications Ltd.

Part of the Tata Group, Tata Communications provides critical telecom infrastructure for 5G networks, including fiber networks and international connectivity. The company is essential for ensuring that 5G data can be transmitted quickly and reliably.

Tata Communications has partnered with several telecom operators to offer 5G connectivity solutions, focusing primarily on enterprise customers.

The company has launched several projects focused on 5G, including solutions for sectors like healthcare, manufacturing, and IoT.

Recently, Tata Communications and Cisco jointly decided to tap India's calling market (comprising cloud and on-premise) estimated to be in the US$ 300 to US$ 400 million (m) range and growing at a CAGR of 10 to 12%.

The Tata company is also looking to expand its global footprint, particularly in emerging markets, to reach a wider customer base and capitalise on growth opportunities.

For more details, see the Tata Comm company fact sheet and quarterly results.

# Bharti Hexacom Ltd.

Bharti Hexacom is a wholly-owned subsidiary of Bharti Airtel.

The government-owned company Telecommunications Consultants holds a 30% stake in Bharti Hexacom. Bharti Airtel has the remaining 70% of Bharti Hexacom.

The company is engaged in the business of wireless services, fixed lines and broadband services in the state of Rajasthan particularly in the Northeastern parts.

The company relies on a robust network infrastructure with a mix of owned and leased assets. As of 30 September 2023, it had 23,748 network towers, of which 5,005 were owned.

Bharti Hexacom has a spectrum portfolio with a varied pool of mid-band spectrum, which enables it to offer 5G Plus services on the widely chosen non-standalone network architecture and at a low cost of ownership.

As part of its growth strategy, the company focuses on enhancing its portfolio by transitioning customers from 2G to 4G/5G, upgrading customers to higher data packs within 4G plans, facilitating pre-paid to post-paid conversions, implementing contextual data monetisation, and offering converged solutions.

These initiatives are aimed at driving Average Revenue Per User (ARPU) growth in the absence of tariff hikes.

For more details, see the Bharti Hexacom Ltd. company fact sheet and quarterly results.

# L&T Technology Services Ltd.

Part of the Larsen & Toubro Group, L&T Technology Services specializes in providing engineering and R&D services for telecom networks. The company is crucial in designing and deploying 5G infrastructure.

L&T Technology Services has been involved in several 5G projects, focusing on network design, testing, and optimization services for telecom operators.

The company recently secured a US$ 100 million project from the Maharashtra government to establish a cybersecurity and digital threat analytics centre.

This contract is a first-of-its-kind programme in India, and a part of its initiative to develop digitally interconnected smart and safe cities through cyber security and digital forensic solutions consolidated under one umbrella.

It has also announced a collaboration with Intel Corporation aimed at developing and providing scalable edge-AI solutions for a range of use cases, including Cellular Vehicle-to-Everything (CV2X) applications.

LTTS' expertise in the domains of connected vehicles and smart transportation systems has been pivotal in the development and implementation of advanced communication technologies like telematics, ADAS and C2VX. It's a strong candidate to ride the global tech transition.

To know more, checkout the company's factsheet and quarterly results.

# Subex Ltd.

Subex is a leading provider of network security and telecom analytics solutions. With the complexity of 5G networks, Subex's solutions help telecom operators manage and secure their networks efficiently.

Subex has introduced a range of security solutions specifically designed for 5G networks. It has partnered with leading telecom operators in India to provide analytics and network security.

The company is working on providing network security solutions for 5G networks across India and Southeast Asia.

Subex plans to expand its offerings by integrating artificial intelligence into its telecom analytics solutions and expects strong growth due to the rising complexity of 5G networks.

The company's focus on GenAI for telecom companies looks quite exciting to be honest. Earlier, it had announced to launch a GenAI solution in collaboration with Google.

While most of its revenue come from the telecom segment, it's worth noting that Subex has repeatedly secured contracts from customers like British Telecom, Telstra International, and Optus Systems.

To know more, check out Subex financial factsheet and its latest quarterly results.

# Schneider Electric Infrastructure Ltd.

Primarily known for its energy management solutions, Schneider Electric has also ventured into telecom infrastructure by providing smart transformers and related equipment essential for 5G networks.

Its product portfolio includes transformers, primary and secondary switchgear, medium voltage switchgear, protection relays, electricity distribution management systems, a software suite for self-healing smart grids, as well as e-House and smart city applications.

Schneider Electric has been providing energy-efficient solutions to support telecom operators with their 5G infrastructure needs.

The company is working with telecom operators to provide energy management solutions for 5G networks.

As of June 2024, Schneider Electric has a strong order book and an order backlog of Rs 12.9 bn.

To know more about Schneider Electric Infrastructure, check out its financial factsheet and latest financial results.

In Conclusion

Though the buzz around 5G is spreading, it has not yet reached its peak.

5G is expected to create never-before-seen opportunities for people and businesses. For instance, 5G is expected to enable new technologies from e-classrooms in educational sector, IoT (Internet of Things) in industrial applications, telemedicine, remote monitoring, remote working, drone-based agriculture monitoring, AR (augmented reality) and VR (virtual reality) applications, and many others.

As a long-term investment it could be a solid choice, that is, if you can deal with the fluctuations.

That's it for today. To know more, check out Equitymaster's powerful stock screener to find the top 5G companies in India.

Happy Investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...