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NIIT gains market share in education business

India's largest computer education firm, NIIT Ltd, said on Monday it had increased its market share in the three months to September despite a shrinking domestic software education market.

"NIIT has successfully gained market share by 2.5 per cent from No 2 and 3 players in the quarter ending September 30, 2001," the New-Delhi based NIIT, known as the McDonald's of computer education because of its wide reach, said in a statement.

The market share rose after NIIT, which provides software services to global clients such as British Airways, introduced new courses focusing on cutting-edge technologies and invested in brand-building, the statement said.

Last month, NIIT estimated that India's software education market had shrunk to around Rs 14.5 billion in September from Rs 20 billion a year ago as global technology firms continued layoffs, affecting sentiment adversely and delaying student enrolments.

It predicted a further contraction in the market for the current year -- estimating it at some Rs 11.5 billion by the next 12 months -- and its share at between 41-42 per cent.

The Indian-IT training industry is extremely fragmented. Estimates for the number of institutes vary from 12,000 to 70,000, and the 10 largest operate about half the training centres nationwide.

NIIT competes with a clutch of listed firms such as Aptech and SSI Ltd in the domestic market for computer and software education.

NIIT's shares, which were hammered as a part of the global sell-off on technology stocks, have staged a massive recovery in almost two months.

At Monday's flat close of Rs 206.65 on the Bombay Stock Exchange, they have surged 141 per cent from their 2001 low of Rs 88.55 touched on September 21.

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