RPG Cables is reportedly mulling over either disposing of or leasing out of one of these facilities and hopes to finalise the deal shortly. ``In the case of sales of the unit, the board of directors will determine the price after consulting an expert valuer in this regard,'' a company source said.

In order to provide for better utilisation of the capacities and optimise use of the productivity of the manufacturing facilities, the company has sought its shareholders' nod to sell or lease a part of these units to a body corporate which will undertake such activity.

It may be noted that the operations of its Mysore facility were disrupted for a period of 40 days on account of a sudden strike by the workers during fiscal 1998-99. An amicable settlement was, however, reached and a three-year wage agreement signed.

The companymanufactures jelly-filled telephone cables, optic fibre cables and power cables. ``Recently, the company commissioned an international consultant for business process re-engineering. The recommendations of the consultant are under implementation,'' the sources added.

When contacted, RPG Cables president AS Jatkar declined to comment on the development. A questionnaire sent to the company secretary MJ Mendonza also did not elicit any response.

The company is also planning to mortgage its immovable properties in order to raise a term loan of Rs 25 crore from ICICI and Rs 15 crore from Industrial Finance Corporation of India (IFCI).

During fiscal 1998-99, RPG Cables reported a marginal decline in its turnover at Rs 366.51 crore (Rs 379.03 crore). Profit after tax during the period was Rs 7.02 crore (Rs 6.09 crore).

Factors like overcapacity, intense competition, reduction in prices of telephone cables due to decline in copper prices have hit the company's performance during the period. Although totalsales have diminished, volumes grew in the jelly-filled telephone cables and optic fibre cables segment.

In the optic fibre cables sector, RPG Cables strengthened its position by bagging substantial orders from the Department of Telecom (DoT), Railways and the private sector which led to an increase in production. However, the prospects in the power cable sector appear dim. ``It will be difficult to anticipate a substantial growth in the power cable segment since the private power generation projects are being delayed,'' the sources said.

The company was also planning to give guarantees to the fund-raising programme of its associate firm RPG Cellcom Ltd. RPG Cellcom is in advance stages of negotiations with leading financial institutions and corporates to raise Rs 107 crore to fund its expansion plans.