Mid-sized IT company Rolta India, through its 51% joint venture Rolta Thales, is planning enter the high-technology sensor manufacturing space
MUMBAI: Mid-sized information technology (IT) company Rolta India, through its 51% joint venture Rolta Thales, is planning enter the high-technology sensor manufacturing space, a senior company official has said.
Currently, the Rs 700 crore company deals only in the GIS, design engineering, and e-commerce space of the IT chain, and this would be its first foray into manufacturing.
Kamal K Singh, chairman and managing director, Rolta India, told DNA Money: “We are looking at entering into manufacturing sensors this financial year. It is a large market worth a couple of thousand crore rupees. Thales has agreed to transfer technology to the JV. Although these are still early days to arrive at an investment figure, any unit of such type would require a investments of around of Rs 100-150 crore.”
Rolta has recently formed Rolta Thales, a 51:49 JV with Thales, a €10 billion French defence contractor. The JV got operational last quarter and is expected to generate revenues from next fiscal.
The JV would be the natural beneficiary of Indian government’s offset clause which mandates the contractor (Thales, in this case) to spend a portion the contract amount domestically.
The JV is looking at revenue of $500 million cumulative over five years.
Singh said technology transfer for a few key defence projects C4ISTAR from Thales has begun, which alone represents potential market size worth Rs 1,000-1,500 crore.
Singh said Rolta is likely to close at least one acquisition during the current quarter.
The company is looking at acquisitions in the US, North America, and UK in ERP, engineering services and GIS space in the $25-150 million range.
In July, it had acquired Canadian GIS firm Orion for an undisclosed sum.
Singh said Rolta Stone & Webster, its equal partnership design engineering JV with US’ Stone & Webster would report 100% revenue growth this fiscal too.
“From next year, we will enter into EPC (engineering, procurement, and construction), which gives us strong revenue visibility,” he said.
The company meanwhile announced a strong July-September quarter results. It reported consolidated revenue at Rs 221 crore, up 43% from the corresponding quarter last year and 9% over the previous quarter. Consolidated net profit rose 44% on-year and 10% sequentially to Rs 54 crore. The company also declared a one-for-one bonus share issue.
Singh said the company sees strong traction in all its three — GIS, engineering services, and e-commerce — business segments, and going forward, would continue to remain focused on the domestic market, which accounts for 60% of its revenues.
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