ROLTA INDIA Exploring New Horizons

DQI Bureau
New Update

Fact Sheet

Rolta India

Rolta Bhavan, MIDC- Marol, Andheri (East)

Mumbai 400 093

Tel: 832 6666, 832 7708, 832 7853

Fax: 836 5992

Offices: Bangalore, Calcutta, Chennai, Dehradun, Gandhinagar, Hyderabad, Jamshedpur, Lucknow, Nagpur, 

New Delhi

Listing (Stock Exchanges): Mumbai, National Stock Exchange, Ahmedabad,

Bangalore, Calcutta and Delhi

BSE Code: 366

NSE Code: Rolta


Being the leader is one thing but maintaining the lead is

altogether a separate issue. More than ever, this principle applies to the

technology companies prevailing today with competition only getting stiffer. In

today’s scenario anybody, who looks at the stock market with the aim of

forming an opinion about a company, can sometimes be wrong. While a company

might be the leader in its own arena, it might actually be maintaining a low

profile in the market, while on the other hand a laggard might be looking down

upon the former. Apart from being the leader, several other factors such as the

management, company’s growth plans, the company’s performance and future

plans hold significance.

Rolta is a leader maintaining a low profile. The company has

been a leader in the CAD/CAM/GIS area for over a decade in India. But what is

more important is the growth path, which will always ensure the company

sufficient room at the top slot. Having established itself in the conversion

area in India, the company is now looking at creating a similar position in the

international market.

Background: An early starter


Rolta India, incorporated in 1981 as Rolta Group, started

operations in the data processing and turnkey solutions market. In 1985 the

company ventured into the CAD/CAE market through a tie-up with Integraph, a

player in the GIS and PDS market. Since then Rolta has grown in the CAD/CAM/GIS

conversion market in India.

In 1990 Rolta made a public issue of equity shares as well as

convertible debentures totaling Rs 20.8 crore. The company used the proceeds of

the public issue to set up manufacturing facilities for Intergraph machines.

Consequently, it made a rights issue in 1992 at a premium of Rs 20 to part

finance a Rs 30 crore engineering software export project. This project involved

setting up a subsidiary in the US as well as a 50,000 Sq ft facility for the

undertaking AM/FM conversion jobs in India.

During the last five years, Rolta’s turnover has increased

from Rs 39.5 crore for year ended December 1995 to Rs 183.5 crore for year ended

December 1999, translating into a CAGR of only 47%, a little lower in comparison

to the industry average of 57%. Rolta’s promoters and their associates

currently hold 45% of the company, the public holds 39% while FIIs, mutual

funds, NRIs and OCBs hold the rest. Rolta recently decided to de-merge the

software conversion business of Rolta Design and Conversion Services (RDCS) for

a valuation of around Rs 250 crore in an all stock deal in the ratio of

4:11. The de-merger, which is expected to be over by December 2000, will result

in an increase in Rolta’s share capital by Rs 8.8 crore. In return, Rolta will

acquire the 40,000 Sq ft conversion facility of RDCS located at Mumbai and

trained technical personnel of about 850 with expertise in the software

conversion business. The human resource of RDCS had been valued at Rs 337.5

crore, as on March 31, 2000, by independent valuers.