The company has just completed acquisition of a closely-held company in Silvassa for around Rs 10 crore to avail of tax advantages. It is yet to decide on the proposed capacity of the facility.

However, the proposed expansion of optics fibres capacity will be taken up at the company's Mysore facility and not at the new plant. The expansion is expected to be commissioned by December this year.

RPG Cables has bagged substantial orders for optic fibre cables from the department of telecom (DoT), Railways and several internet service providers and cellular companies.

Even in the jelly-filled telephone cables segment, the company has recently bagged orders of Rs 196 crore from the DoT and hence is looking at acquisition route to enhance capacity.

Apart fromacquisitions, RPG Cables has chalked out a strategy for ensuring optimum utilisation of its existing capacities. To this end, it may also lease out plant and equipment to the newly acquired Silvassa facility from any of its existing units.

RPG Cables, which was formed through the merger of three RPG group-owned cables companies - Asian Cables, RPG Cables and Upcom Cables, presently has three manufacturing units at Raebarelli, Thane and Mysore.

The company produces JFTCs, optic fibre cables and power cables with an installed capacity of 65.74 lakh cables km for JFTC, 60,000 fibre km for optic fibre cables and 6,816 km of power cables.

In the first quarter, RPG Cables had recorded a 98 per cent increase in turnover at Rs 72.72 crore as compared with Rs 36.63 crore in the corresponding period of last year. Its net profit rose 114 per cent to Rs 1.42 crore against a loss of Rs 9.73 crore in the same period last year.

The cables industry had been hit as most telecom projects had failed to take off and theprojected investments were yet to crystallise. The only saving grace has been the DoT orders which had been flowing in from time to time.