MUMBAI, India: Rolta has acquired Piocon Technologies, a Chicago-based firm that has customers in the oil and gas sector. The acquisition gives Rolta access to solutions which address critical operational needs of refineries. Currently, all of Piocon’s customers are based in the US and Rolta plans to expand this to the Middle-East and India, CMD KK Singh said. Piocon’s website lists oil major Chevron as one of its customers. Chevron has a stake in Reliance Petroleum.
Rolta also intends to cross-sell these services to its existing customers for engineering design, which are mostly in oil and gas, petrochemical and energy sectors. “This (Piocon’s) solution is eminently suited to be extended beyond refinery operations to up-stream and down-stream operations in oil and gas, and to other industry segments like petrochemicals, mining, power, and especially highly regulated sectors like pharmaceuticals and nuclear power,” said Rolta.
Quoting market research, Rolta said the estimated size of the addressable market for these solutions is about $1 billion per annum. With this and the two other acquisitions Rolta has made in the recent past —WhittmanHart and Broech Corporation — the contribution of IT services to its total revenues will go up from around 15% to 32%, approximately equal to what it earns from engineering services. The remaining 40% will come from geographic information systems software.
About 50 consultants, who are permanent employees of Piocon, will transfer to Rolta. The company has the option to transfer the other employees, who are not on its permanent staff, as well. WhittmanHart Consulting, Rolta’s earlier acquisition, is also Chicago-based.