Confirming the moves, company deputy chairman and managing director KC Mehra said: "We have been trying to revive the optics unit for the past three years, but there is no possibility of this either through infusion of funds or via any tie-up. We do not have the level of technology to sustain a unit like this."

Some time ago, Mehra had even visited Tel Aviv in Israel to scout for possible joint venture partners in a bid to turnoarund the division. There was also a proposal for a joint venture with a reputed major international company engaged in the production and marketing of plastic optical lenses.

The lens division has a turnover of less than Rs 2 crore and makes spectacle frames, products made out of AllylDiglycol carbonate Manomer (ADCM) and hard resin opthalmic lenses. The company has also decided to bolster its engineering division via two international collaborations -- with the US-based MA Ford and Richard Lloyd of the United Kingdom, for technology and buyback arrangements. A memorandum of understanding (MoU) has just been signed between Forbes Gokak and the two foreign engineering companies.

Mehra said, "We have signed the MoU for a technology transfer and buyback arrangement. It suits us well to have markets in the UK and the US for our products like tool bits, dyes and nuetralisers and solid carbide goods."

The engineering unit has a sales turnover of over Rs 15 crore, which accounts for nearly 5 per cent of the total turnover of over Rs 320 crore. It manufactures tool bits, rotary cutters, high-speed air tools, cutting tools, spring washers, and other traded tools and instruments.

The strategic alliance with the two international manufacturers of cutting tools has been made to enhance theproduct basket and improve technological capability. Both the projects will be operational during the current year.

Forbes Gokak has been under considerable pressure to restructure and perform over the last few years, especially since the Tata group has begun a relook at all its investments and operations with a view to improving general group efficiency.

One of the key changes effected last year was the entry of the Tata group senior executive of long standing KC Mehra, as chief executive of the company. Mehra has piloted troubled Tata group engineering subsidiaries through difficult times in the past.