APAR Industries Limited has announced a significant milestone in its growth strategy by entering into a 15-year agreement with Karnataka Power Transmission Corporation Limited (KPTCL) to operate, maintain, and monetize a 6,100 km OPGW fiber network in Karnataka. This move marks the company’s expansion into a new line of business through its wholly-owned subsidiary, APAR Transmission & Distribution Project Private Limited (ATDPPL). The contract comes after a competitive selection process, positioning APAR as a key player in the dark fiber monetization sector, which is gaining traction among telecom service providers due to the high uptime and reliability of OPGW networks.

As part of this partnership, ATDPPL will lease the network capacity to telecom companies, generating a steady cash flow from the utilization of dark fiber. The revenue generated will be split between ATDPPL and KPTCL in a 60:40 ratio, creating a long-term recurring revenue stream for APAR in the passive communication infrastructure segment. The company is well-positioned to leverage its established relationships with telecom and data center firms across India, thus enhancing its role as a data connectivity solution provider in Karnataka.

Importantly, the project will not require any capital expenditure over the duration of the agreement, with ATDPPL committing to an annual rental fee of Rs. 5 crore. This strategic diversification allows APAR to build upon its existing capabilities in transmission and distribution while tapping into the lucrative market for dark fiber services. As the demand for reliable data connectivity continues to grow, APAR is poised to benefit significantly from this venture, setting the stage for future growth in the telecommunications infrastructure sector.