The scheme of arrangement for the spin-off of NIIT's software division is expected to be implemented from June 2004, company CEO Vijay Thadani said on Monday.

"We hope that by the end of this year, the scheme will be in place and after that over the next six months, we will have all the necessary regulatory approvals from stock exchanges, registrar of companies, high court and the Reserve Bank of India," he told newspersons on the sidelines of the opening of NIIT Technologies' seventh development facility in New Delhi.

"The scheme of arrangement will be implemented from June," he said. He did not name the consultants who are working out the scheme.

NIIT Technologies would have greater flexibility as well as acquisition currency to create innovative strategic alliances, he added. 

"We would be open to equity stake, strategic alliances from our customers," Thadani said.

Last month, the company's board of directors approved a proposal to spin off global solutions business into a separate company after segregation of knowledge solutions business.

After that, each of the two companies will have a sharper focus on their specific business.

NIIT Technologies on Monday opened its seventh development centre in Delhi with a capacity of 300 professionals. The company's workforce of software professionals in Delhi has now gone up to 2,100.

Arvind Thakur, president of NIIT's software division, said the company currently has a total strength of 2,300 professionals. Over the next six months, the company would add 100 professionals each in Bangalore and Kolkata centres.

NIIT Technologies is looking at manufacturing as a new vertical even though it has identified retail, insurance and airlines as major thrust areas, he said.

The purpose of the proposed restructuring is to accelerate growth in two businesses, education and software, Pawar said.

NIIT posted a 178 per cent rise in its consolidated net profit for the quarter ended September 30, 2003 to Rs 3.8 crore (Rs 38 million).

IT services contributed Rs 141.4 crore (Rs 1.41 billion) and learning business contributed Rs 123.6 crore (Rs 1.24 billion).