TCS hikes stake to 66% in Japanese JV with Mitsubishi Corporation with $32.6 mn investment

New Delhi: IT services major Tata Consultancy Services (TCS) Monday said it is increasing its holding to 66 percent in TCS Japan Ltd - its joint venture with Mitsubishi Corporation (MC) - with an investment of 3.5 billion yen ($32.6 million or Rs 226.2 crore).

"The company through TCS APAC, is acquiring 15 percent stake from MC in TCS Japan for a total consideration of JPY 3.5 billion (about$32.6 million) and consequently, the holding of TCS APAC in TCS Japan will go up from the current 51 percent to 66 percent," TCS said in a BSE filing.

The current governance of operations and management will remain unchanged by the share acquisition, it added.

 TCS hikes stake to 66% in Japanese JV with Mitsubishi Corporation with .6 mn investment

Representational image. Reuters.

The joint venture was established in July 2014.

"Our joint venture has been a game-changer in the Japanese market, bringing scale and impact as companies look for technology partners that can help them ride the waves of digitalisation and heightened global competition," TCS Japan President and CEO, Representative Director, Amur S Lakshminarayanan said.

TCS Japan has achieved double-digit revenue growth in constant currency terms in each of the last two years making it one of the fastest growing IT services firms in its class in Japan, the statement said.

To augment the local workforce and gain scale, a Japan-centric delivery centre (JDC) - with enhanced language support and heavy localisation of global business practices - was set up in 2015 within TCS Sahyadri Park in Pune, lndia.

Also, TCS set up its inaugural Pace Port - a creative hub to catalyse technology-led business innovation for Japanese customers in Tokyo.

Updated Date: Jun 24, 2019 19:52:21 IST