RPG to sell 2 properties in Mumbai

The RPG group has put on the block two of its prime real estate assets in Mumbai "" RPG Towers in Andheri and four lakh square feet of land at Kurla, which is owned by the group company KEC International.

The company has shifted its employees from RPG Towers to its office at the group's headquarters at Worli.

"The proceeds of the sale will be utilised to retire the debt on our books. Earlier also we have sold property for retiring debt," said R D Chandak, managing director, KEC International.

Last year the company had retired debt to the tune of around Rs 70 crore. RPG executives said the value of RPG Towers was at around Rs 35 crore.

KEC International's total debt stands at around Rs 650 crore. The company is also scouting for a buyer for its CETEX Petrochemical division, which has a turnover of Rs 25-30 crore. The proceeds of this sale, too, will be used to retire debt.

Further, as a part of the company's restructuring strategy, it plans to trim its workforce by launching another voluntary retirement scheme (VRS) shortly. At present, the company's manpower stands at around 2,300.

The company had earlier pared its workforce through a series of VRS schemes targeted at different sections of employees.

"This time too we will follow a similar model and introduce specific VRS schemes," Chandak added.

KEC is one of the world's largest power transmission, engineering, procurement and construction companies and has a presence in over 20 countries. Around 80 per cent of its revenues are generated from its overseas projects.

The company's efforts to retire debt comes at a time when it has been making losses. KEC's losses for 2002-03 stood at Rs 9.53 crore.

Meanwhile, KEC has bagged an order worth $36 million in Iraq for the restoration of electricity. The contract is for the reconstruction of the damaged 1,390 km long 400 kv Hartha-Qut transmission line project in south Iraq.

The company will operate out of Basra to execute the order. The project entails fabrication, supply and erection of about 200 transmission towers.

This is the first reconstruction contract in Iraq's power transmission sector to be bagged by an Indian company.