Financial Daily from THE HINDU group of publications
Friday, Mar 12, 2004
Financial Daily from THE HINDU group of publications Friday, Mar 12, 2004 |
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Software Info-Tech - IT Training Corporate - Restructuring NIIT to spin off software biz — Targets US, Europe to grow education division Vipin V. Nair
Kochi , March 11 NIIT Ltd has said it will get into the US and European markets to offer knowledge solutions, after the software business is hived off to a separate company. "So far we've been focussing on markets in developing countries. After the spin-off, we will get into the geographies of the US and Europe," said Mr P. Rajendran, Chief Operating Officer of NIIT. The software business is being hived off as a new company, NIIT Technologies. As part of the scheme of arrangement of the spin-off, a part of the knowledge solution business (KSB) division will be moved to the education division. The KSB division has a presence in the US and Europe. Speaking to Business Line here, Mr Rajendran said NIIT was yet to work out the strategies for the new markets. "No strategy for the US market is written down now," he said, indicating that one of the areas that NIIT would be targeting in the US will be e-learning. The KSB division develops education software, e-learning solutions as well as content. While the software part would be shifted to NIIT Technologies, the other businesses will come to the fold of NIIT Ltd, which will focus on computer education. NIIT expects to complete the formalities of the spin-off by June this year. As per the draft scheme of arrangement to split the company, shareholders, who hold 100 shares, will get 75 shares of NIIT Technologies and 50 shares of the de-merged NIIT Ltd. Mr Rajendran said the spin-off of NIIT would present two options before the investors - those who are keen on quarter-on-quarter growth can invest in NIIT Technologies, and those who have a long-term perspective, can go for NIIT Ltd. "There are two entirely different type of investors. Now we can give both of them an option," he said. On the prospects of the computer education business in the coming quarters, Mr Rajendran said NIIT would have a single-digit growth. "In the next one to one-and-a-half years, we will look only at a single digit growth." He said NIIT Ltd would not go in for adding more centres in the country, though the company was planning to expand its overseas presence. Latin America is one market where NIIT wants to expand its operations.
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