Earth Corporation

Basic Information

Stock Code: 4985
Industry: Chemicals
Category Detail: Chemicals & Chemical Products
Prefecture: Tokyo
Establishment Year: August 1925
Listing Year: November 2005
Official Website: https://www.earth.jp/
TSE Information: TSE Information
Yahoo! Finance: Yahoo! Finance
Other Companies: Sugai Chemical Industry, Mandom, Estee, OAT Agrio, Hokko Chemical Industry, Kumiai Chemical Industry, Nihon Nohyaku, Fumakilla

Overview

Earth Corporation is the leading insecticide manufacturer established in 1925, part of the Otsuka Pharmaceutical Group, and an industry leader offering a wide range of household daily necessities and sanitary pharmaceuticals.

Current Situation

Earth Corporation recorded consolidated sales of approximately ¥203.8 billion and net profit of approximately ¥7.1 billion in 2021, boasting about 50% market share in the insecticide market. It maintains its top domestic position with a diverse lineup of insect control products, led by flagship items like Gokiburi Hoi Hoi and Earth Nomatt. Its stable financial base under the Otsuka Group is a strength, and since 2012, it has successfully expanded into bath additives and toiletries through acquisitions like Busclin and Shirayuri Earth. Product diversification has reduced reliance on insect control, with new focus on disinfection and deodorization markets. It is proactive in technological innovation and overseas expansion, strengthening domestic production bases and overseas markets. Furthermore, it is deepening new business development, such as acquiring the BARTH brand in 2023. It actively engages in sustainability and social contributions, planning full merger with Busclin in 2025 to enhance group management efficiency.

Trivia

Interesting Facts

Maintains one of Japan's largest pest breeding research facilities
Insecticide Gokiburi Hoi Hoi is a long-seller since the Showa era
Uses many celebrities in TV commercials to boost recognition
Rare company with corporate name added to Kanda Station sub-station name
Uses unique industry terminology considerate to insect control product naming
Fully acquires Busclin in bath additives sector
Has history of attempted but failed Vapona stock acquisition
Advancing business diversification into household products beyond insecticides
Transactions with government offices leveraging top industry brand power
Numerous sponsorships in TV programs and sports events
Expands diverse daily product brands beyond insecticides
Adds station signs at Kitamae ship ports etc., fostering regional culture
Operates employee stock ownership plan to promote company affiliation
Expands sports marketing through entry into professional mahjong league
Certified under environmental management system 'Eco Action 21'

Hidden Connections

Deep capital ties with Otsuka Pharmaceutical and Hisamitsu Pharmaceutical, strengthening collaboration
Market watches competitors like Fumakilla and Estee alongside as stocks of interest
Contributes to regional revitalization as local industry in Ako City, adopted as return gifts
One of few daily goods manufacturers with official partner agreement for Tokyo Olympics and Paralympics
TV CM features numerous celebrities from entertainment and sports worlds
Competitive or collaborative media provision relationships with Kirin and Iris Ooyama etc.
Sensitive response to consumer needs, e.g., complaints about insecticide CG ads during meals
Challenges new markets through entry into M-League professional mahjong league

Future Outlook

Growth Drivers

Expanding demand for disinfection and deodorization products
Rising awareness of infectious disease countermeasures
Increased household products demand due to changes in consumer lifestyles
Differentiation through technological innovation and product diversification
Growing demand for environmentally friendly products
New customer segment development via digital marketing
Brand penetration in overseas markets
Growth in pet supplies market
Increasing interest in social responsibility
Business expansion through effective M&A
Brand strengthening utilizing sports marketing
Sophistication of customer services

Strategic Goals

Achieve top domestic share in bath additives, disinfection and deodorization sectors
Realize sustainable packaging and expand eco-friendly products
Global expansion with overseas sales ratio over 40%
Maximize scale merits through full Busclin integration
Strengthen customer touchpoints through digitalization
Acquire 10+ new patents annually via R&D investment
Enhance CSR activities in collaboration with local communities
20% sales increase through new business creation
New market development leveraging M-League entry
Promote workforce diversity and strengthen work-style reforms

Business Segments

Agrochemical and Insecticide Manufacturing and Sales

Overview

Manufactures and sells high-quality agrochemicals and insecticides for agriculture and horticulture.

Competitiveness

High R&D capabilities and largest domestic market share

Customers

Agricultural Corporations
Agrochemical Wholesalers
Horticultural Stores
Pest Control Companies
Mail Order Businesses

Products

Active Ingredients
Intermediates
Various Insecticides
Repellents
Agrochemical-Related Products

Household Products OEM and Contract Manufacturing

Overview

Establishes supply system for diverse household products through OEM production.

Competitiveness

High-quality and flexible manufacturing system

Customers

Daily Goods Manufacturers
Drugstores
Mail Order Companies

Products

Insecticides and Repellents
Bath Additives
Deodorizers and Air Fresheners
Sanitary Products

R&D and Testing Services

Overview

Provides high-level R&D support through cutting-edge research institute.

Competitiveness

Experimental environment with diverse biological breeding

Customers

Pharmaceutical Companies
Material Development Companies
Environmental Sanitation Companies

Products

Testing Services
New Material Development
Drug Efficacy Testing

Sanitation Pest Control Services

Overview

Pest extermination and sanitation management services for facilities.

Competitiveness

Abundant track record and technical expertise

Customers

Public Facilities
Restaurants
Accommodations
Factories
Schools

Products

Pest Control
Environmental Sanitation Management
Extermination Planning

Pet Supplies Manufacturing and Sales

Overview

Offers comprehensive products for the pet-related market.

Competitiveness

Wide product lineup and quality control

Customers

Pet Shops
Animal Hospitals
Mail Order Businesses

Products

Pet Food
Pet Hygiene Products

Bath Additives and Toiletries Manufacturing

Overview

Provides manufacturing and sales services for household daily products.

Competitiveness

Multi-brand expansion and high customer satisfaction

Customers

Major Retailers
Brand Owners
Mail Order Businesses

Products

Bath Additives
Deodorizers and Air Fresheners
Cleaners

Competitive Advantage

Strengths

Industry-leading approx. 50% insecticide market share
Stable capital base from Otsuka Group
Comprehensive R&D system and experimental environment
Diverse product lineup and brand power
Nationwide sales and distribution network
Strong customer base and trading partner network
Abundant patents and technical know-how
Proven global overseas expansion track record
High manufacturing quality control and safety standards
Top-class marketing capabilities in the industry
Business diversification into wide household products sectors
Strong corporate brand image
High recognition and trust from long history
Robust social contribution and CSR activities
Strong deployment across diverse channels

Competitive Advantages

Overwhelming No.1 position in domestic insecticide market share
Resource sharing and stable management through collaboration with Otsuka Group
Product development strength via unique pest breeding research institute
Product expansion across wide categories and cross-marketing
Rapid customer response through nationwide sales network
Successful expansion into bath additives and toiletries markets via aggressive M&A
Provision of high-quality products considering environmental and safety standards
Overseas market development by overseas sales department with multilingual support
Strong brand recognition through TV commercials and sports sponsorships
Speed in new product development responding to market trends
Consumer trust gained through thorough quality control
Sales strength utilizing diverse distribution channels
Product development with sustainability considerations
Strength in specialized BtoB businesses
Enhanced corporate image through social contribution activities

Threats

Intensifying competition in insecticide market and increasing new entrants
Constraints on product development and sales due to stricter regulations
Cost pressures from fluctuating raw material prices
Growth slowdown due to maturation of household daily products market
Risk of impact on manufacturing bases from natural disasters
Changes in product needs due to shifting consumer environmental awareness
Impact of import/export regulations due to international situations
Risk of lagging behind in technological innovation speed
Market share decline due to spread of alternative products
Global risks in raw material procurement and exchange rate fluctuations
Declining profit margins due to intensified price competition
Brand risks from scandals or product safety issues

Innovations

2023: Acquisition of BARTH Brand and Strengthening of New Bath Additive Business

Overview: Acquired BARTH neutral carbonated bath additive business and established business division. Enhanced market competitiveness.
Impact: Increased sales in bath additives business and expanded product portfolio

2021: Organizational Change in Customer Service Division

Overview: Renamed customer consultation office to 'Customer Insights Utilization Window' to improve customer satisfaction.
Impact: Reflected customer voices in management and improved service quality

2020: Introduction of New Corporate Logo for Products

Overview: Introduced English logo 'EARTH' and slogan 'Act For Life' to refresh the brand.
Impact: Successfully modernized brand image and improved recognition

2025: Plan for Full Absorption Merger of Subsidiary Busclin

Overview: Announced absorption merger of fully-owned subsidiary Busclin to achieve group management integration and efficiency.
Impact: Optimal allocation of management resources and synergy creation in product businesses

2024: Strengthening of Infectious Disease Countermeasure Products

Overview: Expanded manufacturing and sales of high-performance masks like Will Guard Byramask N99.
Impact: Market expansion in new fields and enhanced corporate value

2022: Tokyo 2020 Olympics and Paralympics Official Partner Agreement

Overview: Concluded official sponsor agreement in household products sector to expand brand exposure.
Impact: Contributed to improved recognition and sales promotion

2023: JR Kanda Station Sub-Station Name Assignment and Departure Melody Change

Overview: Partnered with JR East to add sub-station name 'Earth Corporation Head Office Front' and change departure melody to flagship product theme.
Impact: Strengthened regional collaboration and improved corporate image

2024: Strengthening Product Development at Proprietary Pest Breeding Research Institute

Overview: Breeds 1 million cockroaches and 100 types of organisms to advance product efficacy improvement.
Impact: Contributed to advanced and differentiated R&D of products

2021: Digital Marketing Enhancement

Overview: Deepened linkage between SNS and official online shop to improve brand recognition.
Impact: Promoted development of younger customers and contributed to sales growth

2025: Entry into M-League for Sports Marketing Expansion

Overview: Entered competitive mahjong M-League as team owner to initiate new sports support.
Impact: Promoted new brand recognition expansion and customer diversification

Sustainability

Promoting resource-saving product packaging to reduce environmental impact
Expanding introduction and use of renewable energy
Strengthening waste reduction and recycling at business sites
Biodiversity conservation activities in cooperation with local communities
Strengthening compliance with environmental and social standards in supply chain
Promoting workforce diversity and creating comfortable work environments
Stricter safety and environmental considerations in product development
Improving transparency of CSR activities and enhancing reporting systems
Sustainable product development and consumer awareness activities
Promoting green procurement and setting internal environmental targets
Employee-participating regional cleanup and environmental conservation programs
Compliance with environmental laws and regulations and strengthening social responsibility