Mumbai: The country's largest IT services firm Tata Consultancy Services (TCS) on Monday said that it is increasing its holding in TCS Japan Ltd, its joint venture with one of Japan’s largest integrated business enterprises Mitsubishi Corporation (MC), to 66%.
"Following the stake hike, TCS will hold 66 per cent equity in TCS Japan – up from 51 per cent, when the joint venture was established in July 2014 – and MC will hold 34 per cent. Both partners reiterated their commitment to the market, and to the success of the joint venture. Current governance of operations and management will remain unchanged by the share acquisition," TCS said in a regulatory filing press release.
Current governance of operations and management will remain unchanged by the share acquisition.
The increased equity is the latest in a series of investments that TCS has made in recent years to cater to the specific needs of Japanese corporations,” it added.
TCS Japan has achieved double-digit revenue growth in constant currency terms in each of the last two years.
"We are pleased to note that Mitsubishi Corporation is now more assured of the partnership, having experienced TCS' services as a customer over the last 5 years, and that both companies continue their strong collaboration to grow the business together. 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 digitalization and heightened global competition," said Amur S Lakshminarayanan, President and CEO, Representative Director, TCS Japan.
"TCS' enhanced stake is a reflection of our steadfast commitment to our customers and our associates in Japan, and our longer term vision for the market. As our joint venture continues to grow in scale and sophistication, we look forward to playing a bigger role in our customers’ transformation journeys to become Business 4.0™ ready."