The agreement has a total potential value of $1.2 billion over its tenure, based on prevailing selling prices of the connectivity products to be supplied.
Under the agreement, Sterlite Technologies will supply optical connectivity products based on the customer’s specifications, with supplies allocated for each calendar year from CY26 through CY30. Purchase orders will be issued periodically during the contract period, with the agreement running through December 2030.
The LTSA also provides for a reciprocal risk-sharing framework, with mutually agreed and capped financial liabilities for both parties in the event of demand or supply-capacity shortfalls or failures.
Earlier in May this year, the company had bagged an international contract worth $1.11 billion. The company said it has received a product award letter from a hyperscale partner for multi-year supply of optical connectivity products.
As per the contract, Sterlite Technologies, via is subsidiary, will supply optical connectivity products as per customer specifications, for AI data center build-outs.
The same will be supplied in each fiscal from FY27 to FY29. The company said the purchase orders will be released periodically during the contract period.