TCS Consulting to buy another 15% stake in Japanese arm for $32.5mn

TCS Consulting the India’s largest IT exporter Tata Consultancy Services (TCS) has bought an additional 15% stake in its Japanese arm, a joint venture with Mitsubishi Corporation (MC), to enhance its shareholding to 66% for $32.5 million. “TCS’ wholly owned subsidiary TCS Asia Pacific Pte. Ltd (TCS APAC), will acquire 15% stake from MC in TCS Japan for a total consideration of JPY 3.5 billion ($32.6 million) and consequently, the holding of TCS APAC in TCS Japan will go up from the current 51% to 66%,” the company said in filing to the exchanges. A company statement said that the 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 localisation of global business practices, was set up in 2015 within TCS Sahyadri Park in Pune, India.recently, TCS set up a creative hub in Tokyo to catalyse technology-led business innovation for Japanese customers.Tata Consultancy Services Japan has achieved double-digit revenue growth in constant currency terms in each of the last two years, making it among the fastest-growing IT services firms in its class in Japan.