Kurabo Industries Ltd.

Basic Information

Stock Code: 3106
Industry: Textile Products
Category Detail: Spinning & Textiles
Prefecture: Osaka Prefecture
Establishment Year: March 1888
Listing Year: May 1949
Official Website: https://www.kurabo.co.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Taihei Electric Industry, Fuji Boseki Holdings, Shikibo, Nittobo, Omi Kenshi, Saibo, Vital KSK Holdings, Nikke, Toa Spinning Corporation, Teika, Takuma, Hisan Seisakusho, Tsurumi Seisakusho, Fujiseal International

Overview

Kurabo Industries Ltd. is a leading Japanese textile products manufacturer founded in 1888, with strengths in heavyweight fibers for jeans and chemical products, deployed widely both domestically and internationally.

Current Situation

Kurabo Industries Ltd. recorded consolidated sales of ¥132.2 billion and net profit of ¥8.8 billion for the fiscal year ended March 2022, maintaining steady management. In addition to its mainstay heavyweight denim fabric business, it is increasing the sales ratio of non-textile sectors through the expansion of its chemical products business. It has multiple manufacturing sites in Japan, group companies in Brazil and Southeast Asia, and is strengthening its presence in overseas markets. As technological innovations, it promotes chemical product development such as the establishment of Chemical Works and addresses environmental impact reduction. It focuses on preventing recurrence of improper trading issues and strengthening governance systems. It plans to close the Anjo factory in 2025 to optimize management resources. Moving forward, it aims for sustainable growth by expanding diversified fields such as chemical products and environmental mechatronics, and reorganizing domestic factories.

Trivia

Interesting Facts

Former factory in founding city Kurashiki certified as Modernization Industrial Heritage
Once led Japan's textile industry as one of the top ten spinning companies
Holds top share in Japan's heavyweight denim fabric
Operates manufacturing subsidiaries in Brazil, Thailand, Indonesia
Kuraray was a separate company founded by the founder's family but now independent
Past fraud incident of sales inflation by employees uncovered
Land for Kurashiki Tivoli Park was company-owned, provided as leased land
Operates commercial facilities and event halls from factory site redevelopment
Diversified management into foods and environmental technology fields
High product quality and steady management highly evaluated in the industry

Hidden Connections

Founder's Ohara family were local landowners with strong community ties
Maintains business collaboration with Kuraray despite no capital ties
Brazil factory leverages local labor and resources as overseas business base
Strengthened internal controls and governance since employee fraud incident
Owns and operates multiple facilities contributing to modern cultural development in Kurashiki area
Has track record of technical alliances and joint developments with domestic and international competitors
Large-scale commercial facility development on factory sites contributes to regional economic revitalization
Advanced environmental mechatronics technology developed from in-house research lab

Future Outlook

Growth Drivers

Promotion of high-function material development in textile products
Market expansion and new application development in chemical products business
Technological innovation and growing demand in environmental mechatronics field
Strengthening focus on recycling and sustainable products in domestic industries
Strengthening business deployment in overseas growth markets (Southeast Asia, etc.)
Continuous product quality improvement and enhanced customer satisfaction
Improved risk diversification effects through business diversification
Productivity improvement through digitalization and automation
Development of environmental technologies compatible with green economy
Enhancing employee technical capabilities and comprehensive talent development

Strategic Goals

Achieve non-textile business ratio over 50%
Reduce CO2 emissions by 30% (vs. 2020)
Achieve overseas sales ratio over 30%
Increase environmentally considerate products sales ratio to 60%
Strengthen collaboration with local communities and expand CSR activities
Promote overall optimization of value chain
Increase number of technology patents in advanced material development
Further promote sustainable resource utilization
Complete digital transformation implementation
Maintain stable financial base and improve profit margins

Business Segments

Textile Products Business

Overview

Manufactures and supplies a wide range of textile products from apparel to industrial use, meeting diverse customer needs.

Competitiveness

High quality backed by years of track record and diverse product lineup

Customers

Apparel manufacturers
Workwear manufacturers
Fashion brands
Exporters
Trading companies
Sportswear manufacturers
OEM companies
Retailers
Uniform suppliers
Automotive industry

Products

Heavyweight denim fabric for jeans
Durable fabric for workwear
Casual fiber materials
Cotton blend spun yarn
Specially dyed fibers
Lace fabric
Wool blend woven fabric
Printed fabric
Dyeing processing services
Water-repellent materials
Shrink-proof processed wool
Textile processed products
Knit fibers
Linen supply materials
Material supply to peer companies

Chemical Products Business

Overview

Manufactures resin and rubber products centered on building materials, compatible with diverse industrial applications.

Competitiveness

Advanced material development and environmental performance capabilities

Customers

Building materials manufacturers
Industrial product manufacturers
Building materials distributors
Trading companies
Construction companies
Electrical equipment manufacturers
Automotive industry
Factory equipment managers
Housing manufacturers
Waterproofing contractors
Adhesive retailers
Plastic processors

Products

Waterproof sheets
Plastic molded parts
Adhesives
Rubber seal materials
Resin compound sheets
Chemical raw materials
Reagents
Paint-related
Chemical processed products
Industrial resin components
Packaging materials
Eco-friendly materials

Environmental Mechatronics Business

Overview

Provides industrial environmental equipment and life science measurement devices utilizing cutting-edge technology.

Competitiveness

Advanced technological capabilities and applicability across multiple fields

Customers

Manufacturing factories
Food manufacturers
Medical institutions
Research institutions
Environmental plant operators
Public facilities
Educational corporations
Pharmaceutical manufacturers
Electronics manufacturers
Measurement instrument distributors

Products

Environmental control systems
Research measurement instruments
Electrical control panels
Industrial plant equipment
Wastewater treatment equipment
Life science technologies
Environmental protection equipment
Automation systems
Control software

Linen Supply Business

Overview

Provides high-quality linen supply and related services for hospitals and hotels.

Competitiveness

Comprehensive logistics system and stable supply capacity

Customers

Hotel chains
Medical institutions
Restaurants
Welfare facilities
Educational institutions
Cleaning companies
Rental companies
Commercial facilities
Government offices
Residential facilities

Products

Business-use sheets and towels
Medical linen
Restaurant linen
Cleaning services
Linen supply materials

Commercial Facilities and Real Estate Business

Overview

Contributes to regional revitalization through composite development and operations of former factory sites.

Competitiveness

Region-rooted real estate and event operation expertise

Customers

Event organizers
Hotel users
Shopping center managers
Local governments
Local residents
Commercial tenants
Logistics operators
Real estate investors
Educational institutions
Transportation operators

Products

Large banquet hall operations
Lodging facility operations
Commercial facility management
Real estate rental management
Event hosting services

Food Business

Overview

Develops food business including instant foods and beverages, serving a wide range of customers.

Competitiveness

Stable quality and instant food technology

Customers

Retailers
Restaurants
Business food suppliers
Consumers
Food processors

Products

Instant foods
Retort prepared foods
Beverage products
Food raw material supply
Processed food materials

Processing Technology Business

Overview

Deploys processing technology and technical support tailored to diverse customer requirements.

Competitiveness

High-precision processing technology and development support capabilities

Customers

Manufacturers
Textile companies
Building materials manufacturers
R&D institutions
Trading companies
OEM companies

Products

Special processing technology
Quality control services
Product customization
R&D support
Technical consulting

Competitive Advantage

Strengths

Domestic top share in heavyweight denim fabric for jeans
Stable financial base and long-term management track record
Wide manufacturing and sales bases including overseas
Diversified business portfolio
Advanced processing technology and special material development capabilities
Technological strength in environmental mechatronics field
Strong brand image 'Kurabo'
Strong ties with local community
Expansion of specialized linen supply business
Stable management from robust earnings structure
Advanced quality control system at manufacturing sites
Extensive customer network
Employee technical skills and experience
Accumulated R&D know-how over many years
Multilingual, multicultural overseas bases

Competitive Advantages

Domestic top share in heavyweight denim fabric field, positioned as industry leading company
Achieves revenue diversification across wide fields from textiles to chemical products and environmental equipment through diversification strategy
Builds global customer base with group companies widely deployed overseas
Succeeds in differentiation from competitors through proprietary processing technology and high-quality materials
Maintains steady management, promptly addresses fraud incidents and factory closures to restore trust
Enhances corporate image through CSR activities in collaboration with local community and cultural facilities
Expects new market development from advanced technologies held in environmental mechatronics business
Strong customer relationships and brand trust from long-term transaction history
Enhances cost competitiveness through process rationalization and factory reorganization
Advances adoption in diverse industrial applications with proprietary chemical product materials
Achieves strengthening of technological foundation through employee technology succession and comprehensive training system
Ensures stable market response through diverse sales channels
Strong collaboration with administration and local companies due to region-rooted corporate stance
Gains customer recognition for proactive environmentally considerate product development and sustainability measures
Growth potential in chemical products and environmental product fields as new investment targets through business diversification

Threats

Shrinking domestic textile market and intensifying price competition
Entry of low-price competitive products from emerging overseas countries
Cost increase risks from raw material price fluctuations
Rising production costs from stricter environmental regulations
Impact of climate change on textile raw material production
Manufacturing labor shortage from declining working population
Risk of declining corporate credibility from improper trading issues
Political and economic risks accompanying overseas business expansion
Impact of exchange rate fluctuations on overseas sales
Threat of technological innovation from new entrants
Intensifying technological competition in environmental mechatronics field
Supply chain disruption risks from pandemics like COVID-19

Innovations

2024: Business Restructuring through Transfer of Kurashiki Machinery Shares

Overview: Transferred shares of consolidated subsidiary Kurashiki Machinery to DMG Mori Seiki to promote selection and concentration of businesses.
Impact: Improved financial stability and business efficiency through concentration of management resources

2020: Establishment of Kurabo Chemical Works

Overview: Established new company to strengthen chemical products business and build new material development structure.
Impact: Enhanced competitiveness in chemical products business and foundation for market expansion

2023: Expansion in Environmental Mechatronics Field through Diversification

Overview: Expanded development and sales areas in environmental equipment and life science technologies.
Impact: Contributes to acquiring new customers and increasing sales

2021: Affiliate of Seiki

Overview: Made affiliate to strengthen collaboration in environmental equipment field.
Impact: Enriched product lineup through technological synergies

2022: SDGs-Compatible Chemical Products Development

Overview: Accelerated R&D of low-environmental-impact products to meet market needs.
Impact: Expanded sales of environmentally considerate products

2025: Production Base Reorganization through Anjo Factory Closure

Overview: Closing the aging Anjo factory and consolidating equipment for efficiency.
Impact: Expects cost reductions and improved production efficiency

Sustainability

Setting and promoting CO2 emission reduction targets in business activities
Expanding use of renewable energy
Ongoing efforts to reduce waste and improve recycling rates
Developing and launching environmentally considerate chemical products
Participating in environmental conservation activities in collaboration with local communities
Implementing environmental awareness education for employees
Strengthening environmental management in supply chains
Enhancing safety and health management systems and improving work environment
Promoting women's active roles and diversity-respecting workplaces
Transparent management through strengthened corporate ethics and compliance