TCS Doubles Down on Japan Investment: Hikes Stake in JV with Mitsubishi Corporation
Tata Consultancy Services Reiterates Commitment to Japanese Market by Increasing Equity Stake in TCS Japan to 66 per cent; Current Governance of JV Operations and Management to Stay Unchanged
MUMBAI, June 24, 2019: Tata Consultancy Services (TCS) (BSE:532540, NSE:TCS), a leading global IT services, consulting and business solutions organization, announced that it is increasing its holding in TCS Japan Ltd, its joint venture with Mitsubishi Corporation (MC), one of Japan’s largest integrated business enterprises.
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.
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. To augment the local workforce and gain scale, a Japan-centric Delivery Center (JDC), with enhanced language support and heavy localization of global business practices, was set up in 2015 within TCS Sahyadri Park in Pune, India. More recently, TCS chose Tokyo to set up its inaugural Pace Port™, a creative hub to catalyze 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.
“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.”
About Tata Consultancy Services (TCS)
Tata Consultancy Services is an IT services, consulting and business solutions organization that has been partnering with many of the world’s largest businesses in their transformation journeys for the last fifty years. TCS offers a consulting-led, cognitive powered, integrated portfolio of business, technology and engineering services and solutions. This is delivered through its unique Location Independent Agile delivery model, recognized as a benchmark of excellence in software development.
A part of the Tata group, India's largest multinational business group, TCS has over 424,000 of the world’s best-trained consultants in 46 countries. The company generated consolidated revenues of US $20.9 billion in the fiscal year ended March 31, 2019, and is listed on the BSE (formerly Bombay Stock Exchange) and the NSE (National Stock Exchange) in India. TCS' proactive stance on climate change and award winning work with communities across the world have earned it a place in leading sustainability indices such as the Dow Jones Sustainability Index (DJSI), MSCI Global Sustainability Index and the FTSE4Good Emerging Index. For more information, visit us at www.tcs.com.
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