Rolta India : Mapping the globe

He’s used acquisitions, along with joint ventures and sheer organic growth, to create a unique business model. So much so, that the Rs 1,000-crore Rolta India has emerged amongst the five leading companies in the world in Geospatial Information Sector (GIS) technology that’s used for the purpose of mapping, satellite imagery and infrastructure development.

Over the past 18 months, Rolta has made six international purchases for a little over $100 million. These include Orion Technologies in Canada, which specialises in enterprise web-GIS (innovative technologies that are web-based and platform-neutral geospatial solutions); and three firms in the US: A consultancy operating in the business intelligence arena, an ERP consulting firm and an IT services provider that’s sharply focussed on the oil & gas sector. Rolta has also acquired intellectual property rights (IPR) from two companies in the US and Canada. 

The Buyout Edge Acquisitions: Orion Technologies, Canada (2007); TUSC, US (2008); Whitmanhart Consulting, US (2008); Piocon Technologies, US (2008) Price tag: Over $100 million for six acquisitions Financing: FCCB proceeds Benefits derived: Has helped move up the value chain, into products. Integration achieved: Added 400 high-level consultants to Rolta India

Says K.K. Singh, Chairman & Managing Director, Rolta India: “The acquisitions have not been just for traditional reasons such as increasing revenues and profits but also to move up the value chain.” Singh has also done well to set the stage for 400 topnotch consultants from the international firms to blend in with the Rolta stable.

Singh expects the acquisitions to add $100 million to Rolta’s revenues in the year ending June 2010—which by some estimates would be 25-30 per cent of the top line. The global recession notwithstanding, Singh is optimistic about achieving a growth of 25-30 per cent in the current fiscal. Rolta funded the six buyouts via a $150-million issue of foreign currency convertible bonds (FCCBs) in July 2007, which will come up for conversion five years hence.

— Anusha Subramanian