The company is planning to bring out a rights issue for the purpose, and has outlined several other measures to achieve a Rs 150 crore cash surplus by the year 2005.

"We will bring in another Rs 50 crore equity within the next two months as part of the ongoing financial restructuring exercise to revamp the company," chief executive officer of JCTEL Anil Nayar said.

The company manufactures colour picture tubes (CPT) and reported a nearly 28 per cent fall in 1998-99 sales due to cash flow problems besides simultaneous investments in its new plant at Vadodra.

"Sales in 1998-99 were dismal due to certain cash flow problems. But this year, we are targeting 1.7 million CPT sales by restructuring our finances," Nayar said. Besides fresh equity infusion, JCTEL's agenda also includes reducing debt-equity ratio to 1:1over the next five years by roping in a strategic partner and converting working capital into term loans.

"At present, we have a debt-equity ratio of 3:1. The Rs 50 crore infusion will improve it. Also on the anvil are plans to tie-up with a strategic partner and convert part of the working capital to term loans," Anil Nayar said. The company, at present, manufactures 20 and 21 inch CPTs, and claims to have the largest manufacturing capacity for these sizes in the country. But keeping the rapid technological advances in the colour television (CTV) industry in mind, JCTEL has drawn up plans to enter several new areas by forging joint ventures, Nayar said.

"The most important new area right now is larger-sized picture tubes and we've been holding talks with several parties to form a joint venture," Anil Nayar said.

The company also plans a foray into manufacturing colour display monitors (CDMS) and other convergence products like Web televisions. "Entering both these areas will also mean forging jointventures with other companies, mainly Asian majors with prior expertise in the field," Nayar said.

Elaborating on the CPT market, Nayar said it has been witnessing annual growth rates of over 30 per cent, in line with the CTV boom. "The market has been growing in excess of 30 per cent each year and we always face a supply shortfall situation," he added.

The company's Vadodra plant, which is working at mere 40 per cent capacity utilisation now would go full stream by June-July.

JCT electronics is also aiming at substantial sales jump in the coming months due to the cricket world cup-related sales targets set by all television manufacturers.

"While April sales are targeted at 85,000 tubes, May and June should see us selling 1,15,000 and 1,40,000 CPTs respectively," Nayar said.

The company, at present has two manufacturing facilities at Mohali and Vadodra respectively. While the Mohali unit has an installed capacity of one million CPT production annually, the new Vadodra plant can produce 1.2 milliontubes. At present, the promoters of the company hold 35 per cent equity, Japanese electronics major Hitachi holds six per cent and the remaining 59 per cent is held by the public.