Nisshin Seifun Group Inc.

Basic Information

Stock Code
2002
Industry
Food Products
Category Detail
Food Manufacturing
Prefecture
Tokyo
Establishment Year
October 1900
Listing Year
May 1949
Official Website
https://www.nisshin.com
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Nippn, Nitto Fuji Flour Milling, Showa Sangyo, Torigoe Flour Milling, Nichirei, Nissin Foods HD

Overview

Nisshin Seifun Group Inc. is Japan's largest flour milling company founded in 1900, operating diversified food and bio businesses, and actively expanding overseas as a holding company.

Current Situation

Nisshin Seifun Group Inc. recorded consolidated revenue of 712.18 billion yen and net profit of 23.67 billion yen for fiscal year 2020, boasting the top market share in the flour milling industry. It maintains approximately 39% market share in domestic flour milling, with stable revenue base from diversified businesses including food, ready-to-eat meals and side dishes, yeast and bio, and health foods. Overseas, it has acquired flour milling companies in the US and Australia, and established pasta production bases in Turkey, among other global expansions. Recently, it has been advancing group reorganization and making subsidiaries wholly owned to build efficient management structures. In the near term, it is focusing on investments in new business areas and achieving a sustainable society, with medium- to long-term strategic goals of expanding in the Asian market and strengthening peripheral businesses beyond flour milling. It is also working on branding enhancements, such as introducing brand characters.

Trivia

Interesting Facts

  • Founded in 1900, a pioneer in Japan's flour milling industry
  • Forms one corner of the big four in the flour milling industry
  • Has a pasta production base in Turkey through joint venture with Marubeni
  • 38.9% share in flour products, industry top
  • Studio Ghibli's Toshio Suzuki handled character design
  • Applies bio technology across diverse business fields
  • Capital relationships with multiple major companies including Marubeni and Yamazaki Baking
  • Maintains multiple official SNS accounts
  • Operates multiple silos and flour mills mainly in Kanto region
  • Expands into health foods and pet food beyond flour milling

Hidden Connections

  • Has strong historical ties with Nezu Zaibatsu-related companies
  • Mutual capital holdings with Nissin Foods Holdings
  • Business collaboration advances through mutual investment with Yamazaki Baking
  • Collaborates with bio-related companies for R&D beyond flour milling
  • Sponsors rugby teams and co-sponsors sports events
  • Significant influence on market trends of wheat processed products in Japan
  • Plays a central role in the flour millers association
  • Collaborates with diverse external companies and research institutions in product development

Future Outlook

Growth Drivers

  • Increasing demand for flour and processed foods in Asian markets
  • Growth in health and functional food markets
  • New business expansion through bio technology applications
  • Strengthening response to diversifying consumer needs
  • Advancement of sustainable management in response to environmental regulations
  • Overseas base expansion through global M&A
  • Production efficiency and quality improvement via DX utilization
  • Expansion of ready-meal and side dish markets and logistics innovation
  • Diversification and stabilization of raw material procurement
  • Competitiveness enhancement through capital and business alliances
  • Differentiation promotion through new materials and product development
  • Expansion of sustainable product sales

Strategic Goals

  • Expand domestic flour share to 45%
  • Achieve over 30% overseas sales ratio
  • Double sales in bio and health food businesses
  • Achieve 40% CO2 emissions reduction and lower environmental impact
  • Strengthen digital integration of product lineup
  • Reach top class in ready-meal and side dish fields
  • 50% sales ratio of sustainable certified products
  • Realize continuous skill improvement for employees
  • Acquire additional ¥100 billion in annual sales through new businesses
  • Establish safe and secure food supply system

Business Segments

Flour Raw Material Supply

Overview
Segment stably supplying high-quality flour raw materials for business use domestically and internationally.
Competitiveness
Stable supply through flour milling technology and global procurement network
Customers
  • Bread and Confectionery Manufacturers
  • Food Processors
  • Food Service Industry
  • Feed Manufacturers
  • Flour Millers Association
  • Exporters
Products
  • Various Flours
  • Starch and Additives
  • Special Powder Processed Products
  • Raw Grains
  • Feed Raw Materials
  • Food Ingredients

Noodle Manufacturing and Sales

Overview
Leads the wholesale and business ingredient market by providing diverse noodle products.
Competitiveness
Wide lineup of noodle products and quality control
Customers
  • Frozen Food Manufacturers
  • Business Ingredient Wholesalers
  • Restaurant Chains
  • Retail Stores
  • Prepared Food Businesses
Products
  • Pasta
  • Udon
  • Soba
  • Chinese Noodles
  • Instant Noodle Materials
  • Frozen Noodles

Ready Meals and Side Dishes Manufacturing

Overview
Manufactures and provides high-quality products such as bento and side dishes for the ready-meal market.
Competitiveness
Rich product development capabilities and distribution network
Customers
  • Supermarkets
  • Convenience Stores
  • Food Wholesalers
  • Food Service Industry
Products
  • Bento
  • Side Dishes
  • Ready-to-Eat Foods
  • Frozen Foods
  • Deli

Yeast and Bio Products

Overview
Manufactures yeast and related bio products, expanding from food to medical fields.
Competitiveness
Proprietary fermentation technology and quality control
Customers
  • Bread Manufacturers
  • Confectionery Businesses
  • Pharmaceutical Manufacturers
  • Bio-Related Companies
Products
  • Yeast Products
  • Fermented Seasonings
  • Bio Raw Materials
  • Additives
  • Life Science Products

Health Foods and Pharmaceutical Related

Overview
Develops and sells products in response to growing health consciousness.
Competitiveness
R&D capabilities and high-quality manufacturing system
Customers
  • Health Food Retailers
  • Pharmaceutical Companies
  • Medical Institutions
  • Mail Order Companies
Products
  • Nutritional Supplements
  • Pharmaceutical Raw Materials
  • Functional Foods
  • Supplements

Feed Manufacturing and Sales

Overview
Contributes to feed manufacturing for livestock and aquaculture and quality improvement.
Competitiveness
Development capabilities for high-function feed and stable supply
Customers
  • Livestock Farmers
  • Poultry Farms
  • Aquaculture Businesses
  • Pet Food Businesses
Products
  • Compound Feed
  • Single Feed
  • Pet Food
  • Feed Additives

Engineering and Mesh Cloth

Overview
Provides various mesh materials for industrial use and engineering business.
Competitiveness
Special fiber processing technology and versatility across industries
Customers
  • Industrial Machinery Manufacturers
  • Building and Factory Facility Management
  • Precision Equipment Manufacturers
  • Building Materials Businesses
Products
  • Mesh Filters
  • Air Conditioning Nets
  • Industrial Mesh
  • Design and Construction Services

Overseas Flour Milling and Food Business

Overview
Expands flour food business overseas, centered on the US, Australia, and Turkey.
Competitiveness
Local production and sales network through joint venture with Marubeni
Customers
  • Overseas Wholesalers
  • Food Exporters
  • Food Service Industry
  • Importers
Products
  • Export Flour Products
  • Pasta Products
  • Processed Foods
  • Local Production Products

Food Wholesaling and Distribution

Overview
Handles intermediate operations in domestic food distribution to support stable supply.
Competitiveness
Extensive sales network and distribution management
Customers
  • Retail Stores
  • Food Service Outlets
  • Convenience Store Chains
  • Department Stores
Products
  • Processed Foods
  • Ingredients
  • Alcoholic Beverages
  • Seasonings

Raw Material Procurement and Import

Overview
Handles procurement and stable supply of grains and other raw materials with thorough quality control.
Competitiveness
Global procurement network and quality assurance system
Customers
  • Flour Milling Business Division
  • Processed Food Business Division
  • Food Service and Retail Businesses
Products
  • Imported Wheat
  • Feed Raw Materials
  • Seasoning Raw Materials

Food Processing Machinery Sales

Overview
Sells machinery necessary for food processing and provides technical support.
Competitiveness
Comprehensive technical services from machinery introduction to maintenance
Customers
  • Food Manufacturers
  • Food Service Industry
  • Ready Meal Businesses
Products
  • Flour Milling Machinery
  • Packaging Equipment
  • Mixers
  • Freezing Equipment

Food R&D Support

Overview
Provides technical support and quality evaluation for flour milling and food companies.
Competitiveness
Long-accumulated technology and support by experts
Customers
  • Research Institutions
  • Flour-Related Manufacturers
  • Food Processing Companies
Products
  • Food Testing Services
  • Flour Milling Technical Support
  • Quality Evaluation

Competitive Advantage

Strengths

  • Over 39% domestic flour milling market share
  • Diversified food and bio business operations
  • Global business network
  • High R&D capabilities and quality management system
  • Stable financial base and funding strength
  • Diverse brand lineup
  • Integrated system from flour milling to processed foods
  • Long history and trusted brand power
  • Efficient management under holding company structure
  • Rich track record in overseas acquisitions and joint ventures
  • Wide sales channels
  • Rich group of subsidiaries and synergy effects
  • Excellent product development and innovation
  • High-quality yeast and bio product technology
  • Stable raw material procurement network

Competitive Advantages

  • Overwhelming top share and brand recognition in domestic flour milling market
  • Wide business portfolio through diverse products and subsidiaries
  • Global competitiveness through acquisitions of overseas flour companies like in the US and Australia
  • Growth base from business diversification into bio technology and health foods
  • Pasta production expansion in Turkey through joint venture with Marubeni
  • Superior quality management and long-accumulated flour milling technology
  • Diverse sales channels and strong network in domestic wholesaling market
  • Flexibility in management strategy under efficient holding company structure
  • Market segmentation response through region-specific brand development
  • Advancement of flour milling and food technology through R&D investments
  • Implementation of environment and social consideration activities for sustainable management
  • Maximization of business synergies through inter-subsidiary cooperation
  • Execution of aggressive M&A and investment strategies backed by stable financial base
  • Enclosure of wide range of related businesses from food to feed and pet food
  • Specialized marketing capabilities in each business field

Threats

  • Risk of profit pressure from raw material price fluctuations
  • Decline in market share due to intensifying competition in domestic flour milling
  • Political and economic instability in overseas markets
  • Impact of exchange rate fluctuations on overseas business earnings
  • Changes in consumer health preferences affecting demand structure
  • Brand damage from food safety issues
  • Rising manufacturing costs from strengthened environmental regulations
  • Logistics issues and supply risks due to dependence on raw material imports
  • Supply-demand fluctuations from COVID-19 and other pandemics
  • Risks from competitors' technological innovations and new entrants
  • Demand contraction from domestic population decline
  • Compliance burden from legal amendments and food labeling regulations

Innovations

2020: Management Efficiency Improvement through Wholly Owning Subsidiaries

Overview
Made Oriental Yeast Industry and NBC Mesh Tech wholly owned subsidiaries to strengthen management structure.
Impact
Improved group synergies and management efficiency

2024: Strengthening Overseas Pasta Production Bases

Overview
Established pasta production company in joint venture with Marubeni in Turkey to build export system.
Impact
Strengthened revenue base through overseas market expansion

2021: Strengthening Bio Science Technology R&D

Overview
Focused on developing health foods using yeast and fermentation technology, launching multiple new products.
Impact
Sales growth in new markets and improved competitiveness

2023: Introduction of High-Function Technology for Flour Products

Overview
Advanced product quality uniformity by utilizing advanced analysis technology and AI in flour milling processes.
Impact
Improved customer trust through quality stabilization

2022: Strengthening Sustainability Measures

Overview
Introduced renewable materials in product packaging and started operating energy-saving equipment.
Impact
Reduced environmental impact and improved corporate image

Sustainability

  • Introduction of energy-saving technology in flour milling processes and CO2 reduction
  • Active adoption of recycled materials and waste reduction
  • Promotion of environmental conservation activities in collaboration with local communities
  • Formulation and compliance with sustainable procurement standards
  • Implementation of employee environmental awareness programs