Tata Consultancy Services Ltd (TCS) is increasing its stake in its Japanese joint venture with Mitsubishi Corporation, as India’s biggest software services company looks to strengthen its presence in the world’s third-largest economy.
Mumbai-based TCS said in a statement on Monday it will increase its stake in TCS Japan Ltd to 66% from 51% by buying part of Mitsubishi’s share for 3.5 billion yen ($32.6 million).
Mitsubishi will own 34% of the joint venture, which was set up in July 2014, after the transaction.
The change in shareholding will not affect TCS Japan’s operations and management, TCS said.
TCS said the decision to increase its stake in the unit is the latest in a series of investments that it has made to cater to the needs of Japanese corporations. The Tata Group company had, in 2015, opened a Japan-centric delivery centre, with enhanced language support and heavy localisation of global business practices, in Pune.
More recently, TCS chose Tokyo to set up its inaugural Pace Port, a creative hub to catalyse technology-led business innovation for Japanese customers.
TCS said its Japan unit has achieved double-digit revenue growth in constant currency terms in each of the last two years, making it one of the fastest growing lT services companies in its class in Japan.
Amur S Lakshminarayanan, president, CEO and representative director at TCS Japan, said that both TCS and Mitsubishi will continue their collaboration to grow the business together.
TCS employs about 424,000 people in 46 countries. The company generated consolidated revenue of $20.9 billion in the year ended March 31, 2019.