TCS hikes stake in Japan JV with Mitsubishi to 66%
25 June 2019
Tata Consultancy Services (TCS), the country’s largest IT services company, on Monday said that it is increasing its holding in TCS Japan Ltd, its joint venture with Japanese industrial giant Mitsubishi Corporation (MC), to 66 per cent from the current 51 per cent.
“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,” TCS stated in a release, adding that the share acquisition will not alter current governance of operations and management.
TCS said the increased equity was part of a series of investments that the company has made in recent years to cater to the specific needs of Japanese corporations.
TCS had, in 2015, set up a Japan-centric Delivery Center (JDC), with enhanced language support and heavy localisation of global business practices, within TCS Sahyadri Park in Pune to augment the local workforce and gain scale. More recently, TCS chose Tokyo to set up its inaugural Pace Port, a creative hub to catalyse technology-led business innovation for Japanese customers.
“Leveraging a unique hybrid model combining deep domain knowledge, technology expertise, and strong global and local execution, 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,” TCS pointed out.
“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 digitalisation 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,” he added.