ROLTA INDIA Exploring New Horizons

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.

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