Tata Consultancy Services (TCS), the country's biggest software company, has taken full control of its Brazilian joint venture, TCS do Brasil, by buying out its partner with the aim of ramping up its operations in the emerging market.
TCS acquired its partner Grupo TBA's 49 per cent stake for $ 33.4 million.
The buyout will enhance the company's Latin American operations, where it provides services to over 30 clients including ABN Amro, Goodyear, Equifax and Brasil Telecom.
TCS had entered the Brazilian market in 2002 through the 51:49 joint venture with Grupo TBA. The latest move is expected to raise its profile.
"The acquisition will enable the company to scale up operations. TCS may pump in additional investments later to enhance the Brazilian operations. The company will also increase the Latin American headcount over a period of time," a source close to TCS said.
"Latin American operations are very strategic in nature as it serves major US-based clients from there," the source said, also pointing out that last year, the Tatas had acquired Chilean business process outsourcing (BPO) firm Comicrom.
TCS do Brasil recorded a top line of $ 66.5 million for the year ended March 31, and has over 1,700 employees. The company operates delivery centres in Sao Paulo and Brasilia.
TCS employs over 89,000 people worldwide in 47 countries. The company generated consolidated revenues of $4.3 billion in 2006/07.
The company's sales in Latin American countries soared by more than 200 per cent to $160 million in the last fiscal year. Latin America now represents four per cent of TCS's global revenues. In the previous financial year, the region had contributed 1.9 per cent of global sales for the company.