Financial Daily from THE HINDU group of publications
Saturday, Jul 06, 2002
Corporate - Announcements
NIIT software business gets distinct identity Not a prelude to spin-off, says Pawar
Mr Kiran Karnik, President, Nasscom, with Mr Rajendra S. Pawar, Chairman, at a press conference in the Capital on Friday.
NEW DELHI, July 5
NIIT today announced that it has renamed its global software business as `NIIT Technologies' with the objective of giving it a distinct identity, but ruled out hiving it off as a separate entity.
Announcing this at a press conference here today, Mr Rajendra S. Pawar, Chairman, NIIT, said, ``this is a defining moment for NIIT. The branding exercise for NIIT Technologies is in keeping with our desire to aggressively address the vast opportunities that exist to establish ourselves as a scale player in the IT services space.''
With this development, the software business of NIIT moves away from the shadow of its better-known education business, Mr Arvind Thakur, Director and President, NIIT Technologies, said. ``Revenues from NIIT's software business have exceeded those from the education business. NIIT Technologies aims to substantially reinforce its presence in the US, Europe and the Asia-Pacific regions, while focusing on its identified domains and service practices,'' Mr Thakur added.
During the quarter ended March 2002, global software business revenues of NIIT stood at Rs 107.8 crore, while its education business contributed Rs 81.4 crore.
When asked whether creating the new brand was a prelude to spinning off a separate software company, Mr Thakur asserted that NIIT was not `considering such a move.'
NIIT's main rival in education business, Aptech, had earlier separated its software and education divisions, fuelling speculations that NIIT too may follow suit. He said NIIT Technologies would offer services in custom software development and maintenance, legacy maintenance and modernisation, enterprise integration and knowledge solutions. It will also offer solutions in finance, transport and retail domains.
Unveiling the new logo of NIIT Technologies, Mr Kiran Karnik, President, National Association of Software and Services Companies, said, ``the Indian software industry needs to take the direction of branding and marketing. And Nasscom and its members have a crucial role to play in strengthening the India Inc brand.''
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