UPDATE 1-Japan's FamilyMart to ramp up expansion in China

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TOKYO May 11 (Reuters) - Japanese convenience store operator FamilyMart said on Wednesday it aims to increase the number of its outlets in China to 8,000 by February 2021 from around 600 now as it seeks growth drivers outside its tough home market.

FamilyMart also said Ting Hsin International Group, China's No. 1 food processing company, will lift its stake in their joint venture that operates FamilyMart stores in China to 59.65 percent from 50.5 percent.

FamilyMart, in which Japanese trading house Itochu Corp holds a 30.65 percent share, is aiming to boost the number of its stores worldwide to 40,000 in its 2020 business year from about 18,000 now. Of that, 11,000 outlets would be in Japan with 29,000 overseas.

Faced with weak growth prospects in Japan where the population is declining and persistent deflation saps profitability, domestic convenience store chains are looking overseas to secure growth.

FamilyMart, Japan's No.3 convenience store chain, said earlier it is aiming for a recurring profit of 60 billion yen ($742 million) in the financial year ending in February 2016, with about 20 percent of that amount coming from overseas operations.

The convenience store operator is projecting a recurring profit of 40.5 billion yen in its current business year that started in March. ($1 = 80.835 Japanese Yen) (Reporting by James Topham; Editing by Chris Gallagher)