Nippon Nohyaku

Basic Information

Stock Code
4997
Industry
Chemicals
Category Detail
Chemicals & Chemical Products
Prefecture
Tokyo
Establishment Year
November 1928
Listing Year
July 1963
Official Website
https://www.nichino.co.jp/
TSE Information
TSE Information
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Other Companies
Synchro, Sugai Chemical Industry, ADEKA, Sumitomo Pharma, OAT Agrio, Earth Corporation, Hokko Chemical Industry, Kumiai Chemical Industry, Fumakilla

Overview

Nippon Nohyaku is a long-established company in the chemical industry founded in 1928, a major corporation expanding its business with strengths in its in-house development capabilities centered on agrochemicals and pharmaceuticals.

Current Situation

Nippon Nohyaku recorded consolidated sales of approximately 63.2 billion yen and operating profit of approximately 3.3 billion yen in fiscal 2020, maintaining stable management. In addition to its mainstay agrochemical business, it is focusing on the development and manufacturing of pharmaceuticals and veterinary medicines, advancing diversification. It has placed its research and development bases in Osaka and is also engaged in smart agriculture utilizing AI technology. As part of the Furukawa Group, it is strengthening its global expansion with support from its major shareholder ADEKA. It focuses on developing products with reduced environmental impact and high safety, aiming to contribute to sustainable agriculture. As a long-term strategy, it has set goals to increase the ratio of in-house developed products and expand its market share overseas. From 2023 onward, it continues drug discovery research for pharmaceuticals and enhancement of agrochemical functions, targeting sales exceeding 70 billion yen in the medium term. It maintains market competitiveness through collaboration with competitors and technological innovations.

Trivia

Interesting Facts

  • Founded in 1928 by merger of Asahi Denkakogyo Agrochemical Division and Fujii Seiyaku
  • Manufactures pharmaceuticals including athlete's foot medicines in addition to agrochemicals
  • Early adopter of AI-utilizing smart agriculture technology
  • Maintains stable management base as a member of Furukawa Sansui Association
  • One of Japan's leading agrochemical manufacturers
  • Has track record of supplying products to Maruho and Daiichi Sankyo Healthcare
  • Diverse agrochemical product lineup includes technology inherited from former Mitsubishi Chemical
  • Operates multiple group companies overseas
  • Manufacturer of household insecticide Benika DX
  • Leads the industry in environmentally considerate agrochemical design
  • Nagahama Nursery serves as base for agricultural materials cultivation
  • Multiple co-developed products with Syngenta
  • Major shareholder ADEKA holds approximately 51% of shares
  • Active research on agents to reduce environmental impact
  • Pharmaceutical research lab established in 1991

Hidden Connections

  • Wholly owned subsidiary of ADEKA, central to group management
  • Diverse product lineup from technology inheritance from former Mitsubishi Chemical Agrochemical Division
  • Strengthened antifungal drug-related products through partnership with Maruho
  • Maintains industry collaboration utilizing Furukawa Sansui Association network
  • Provides Thunderbolt herbicide co-developed with Syngenta
  • Also serves as OEM supplier for some Sumitomo Chemical gardening products
  • AI pest diagnosis app exemplifies seamless expansion in agricultural IoT field
  • Deep connections with heavy electrical and machinery industries as part of Furukawa Group

Future Outlook

Growth Drivers

  • Sophistication of agrochemical demand through spread of smart agriculture
  • Growing market needs for low-environmental-impact products
  • Support for efficient pesticide use via AI and IT technologies
  • Expansion of agrochemical and pharmaceutical demand in emerging overseas markets
  • New product launches through drug discovery research in pharmaceuticals
  • Promotion of high-performance agrochemical adoption amid strengthened regulations
  • Deepening collaboration with green energy and environmental businesses
  • Comprehensive rollout of agricultural materials and related services
  • Enhanced brand power through strengthened response to sustainable society
  • Market expansion leveraging global network

Strategic Goals

  • Achieve over 70% ratio of in-house developed agrochemicals
  • Expand overseas sales ratio to over 30%
  • Expand smart agriculture-related products and services
  • Reduce CO2 emissions by 30% to lessen environmental impact
  • Strengthen pharmaceuticals centered on new antifungal drugs
  • Diversify water treatment and environmental-related businesses
  • Improve product quality through formulation technology innovation
  • Enhance employee diversity and work-life balance
  • Develop and promote low-risk agrochemical products
  • Expand regional and social contribution activities

Business Segments

Agrochemical Manufacturing and Sales

Overview
Provides agrochemicals and related materials for corporate customers.
Competitiveness
High-performance in-house active ingredients backed by years of technological accumulation
Customers
  • Agricultural Corporations
  • Agricultural Cooperatives
  • Agrochemical Wholesalers
  • Horticultural Shops
  • Local Governments
Products
  • Fungicides
  • Insecticides
  • Herbicides
  • Agricultural Materials
  • Plant Protection Agents

Pharmaceuticals and Veterinary Medicines

Overview
Handles research, manufacturing, and distribution of medical and veterinary pharmaceuticals.
Competitiveness
Leads the market with drug discovery research and manufacturing technology
Customers
  • Medical Institutions
  • Drugstores
  • Veterinary Clinics
  • Pharmaceutical Companies
Products
  • Antifungal Drugs (Prescription and OTC)
  • Veterinary Antibacterials
  • Veterinary Fungicides

Industrial Chemicals

Overview
Supplies a variety of chemicals for industrial sites to support product quality.
Competitiveness
Diverse development capabilities in functional chemicals
Customers
  • Various Manufacturing Industries
  • Electronic Parts Manufacturers
  • Steel Industry
  • Chemical Companies
Products
  • Rust Preventives
  • Flame Retardants
  • Petroleum-Based Cleaners
  • Plating Chemicals

Water Treatment Business

Overview
Provides products and solutions related to water purification and management.
Competitiveness
Expansion linked with agrochemical-related technologies
Customers
  • Factories
  • Local Governments
  • Agricultural Producers
Products
  • Water Treatment Chemicals
  • Water Treatment Equipment

Agricultural ICT and Smart Agriculture

Overview
Promotes smart agriculture solutions utilizing AI technology.
Competitiveness
Market superiority through integration of advanced technologies
Customers
  • Agricultural Corporations
  • Research Institutions
  • Local Governments
Products
  • AI Pest and Disease Diagnosis App
  • Agricultural Materials Monitoring System

Overseas Business Expansion

Overview
Builds direct sales and agent networks in overseas markets.
Competitiveness
Strengthening local production and sales systems
Customers
  • Overseas Agricultural Corporations
  • Local Agents
  • Local Government Agencies
Products
  • Agrochemical Products
  • Pharmaceutical Products

Environmental Business

Overview
Provides chemicals and services aimed at reducing environmental impact.
Competitiveness
Expertise in environmental fields applying agrochemical technology
Customers
  • Environmental Consultants
  • Local Governments
  • Corporations
Products
  • Environmental Cleanup Chemicals
  • Sustainability Solutions

Agricultural Materials Supply

Overview
Supplies materials to support efficiency and quality improvement in agricultural production.
Competitiveness
Integrated proposals linked with agrochemicals
Customers
  • Agricultural Producers
  • Agricultural Cooperatives
  • Horticultural Businesses
Products
  • Soil Conditioners
  • Plant Protection Materials
  • Seed Treatment Agents

Formulation and R&D Outsourcing

Overview
Promotes innovation through formulation manufacturing technology provision and joint research.
Competitiveness
Advanced manufacturing technology and research infrastructure
Customers
  • Pharmaceutical Companies
  • Chemical Manufacturers
  • Research Institutions
Products
  • Formulation Technology Provision
  • Joint R&D

Distribution and Logistics Services

Overview
Deploys logistics and distribution functions for stable product supply.
Competitiveness
Powerful logistics foundation of the Furukawa Group
Customers
  • Agrochemical Retailers
  • Pharmaceutical Distributors
Products
  • Agrochemical Distribution
  • Pharmaceutical Logistics

Education and Outreach Activities

Overview
Provides educational support for proper pesticide use and dissemination of advanced technologies.
Competitiveness
Specialized knowledge and industry network
Customers
  • Farmers
  • Local Governments
  • Educational Institutions
Products
  • Pesticide Use Education
  • Smart Agriculture Awareness

Wood Protection Chemicals Business

Overview
Provides wood chemicals to improve durability.
Competitiveness
Development of environmentally harmonious products
Customers
  • Construction Companies
  • Forestry Businesses
  • Housing Manufacturers
Products
  • Preservatives
  • Termiticides

Competitive Advantage

Strengths

  • High ratio of in-house developed products and technological strength
  • Furukawa Group management foundation
  • Diversified business in agrochemicals and pharmaceuticals
  • Innovation through R&D bases
  • Global sales network
  • Diverse product portfolio
  • Smart agriculture deployment utilizing AI technology
  • Focus on sustainable product development
  • Stable financial base and capital
  • High expertise in formulation manufacturing technology
  • Product design considering environmental safety
  • Deep relationships with a wide customer base
  • Presence of specialized engineers and researchers
  • Comprehensive network of domestic and overseas subsidiaries
  • High technical proficiency of employees

Competitive Advantages

  • Product differentiation through successful in-house antifungal drug development
  • Technology inheritance from part of former Mitsubishi Chemical's agrochemical business
  • Manufacturing and partnership system for prescription and OTC drugs in pharmaceuticals
  • Initiatives in smart agriculture combining AI and IT technologies
  • High R&D capabilities in both agrochemical and pharmaceutical fields
  • Management stability utilizing Furukawa Sansui Association network
  • Broad market coverage from diverse agrochemical active ingredients and formulations
  • Long-cultivated domestic and overseas distribution channels
  • Product reliability through high-quality management system
  • Introduction of environmentally friendly low-impact technologies
  • Diversified business leveraging core technologies
  • Enhanced competitiveness through capital and technical support from major group
  • Know-how in regulatory compliance for pharmaceuticals and agrochemicals
  • Globalization through active overseas subsidiaries
  • Sustainable product lineup compliant with environmental regulations

Threats

  • Risk of strengthened regulations in the agrochemical market
  • Price pressure from intensifying global competition
  • Market share decline due to competition from imported agrochemicals
  • Decline in competitiveness from delays in technological innovation
  • Impact of rising raw material prices
  • Increasing demands for product safety due to environmental issues
  • Agricultural market contraction due to population decline
  • Export restriction risks from overseas disease issues
  • Profit fluctuations due to exchange rate variations
  • Decline in R&D capabilities due to talent shortage
  • Risk of patent infringement lawsuits
  • Production impacts from natural disasters, etc.

Innovations

2024: Advanced AI Pest, Disease, and Weed Diagnosis App

Overview
Released an app utilizing the latest AI technology for more accurate diagnosis of crop pests and weeds.
Impact
Contributes to reducing pesticide usage and increasing crop yields

2023: Improved Manufacturing Efficiency for Lanoconazole Antifungal Drug

Overview
Revolutionized the production process for the developed antifungal drug lanoconazole, reducing manufacturing costs.
Impact
Strengthens market competitiveness and improves profitability

2022: Completion of Joint Development of New Herbicide

Overview
Successfully commercialized a new herbicide through joint development with Syngenta.
Impact
Contributes to improving work efficiency in agricultural fields

2021: Promotion of Low-Environmental-Impact Agrochemical Development

Overview
Focused on R&D of highly degradable agrochemical materials, significantly reducing environmental impact.
Impact
Contributes to realizing sustainable agriculture

2020: Innovation in Pharmaceutical Formulation Technology

Overview
Developed formulation technology for efficiency and quality improvement in pharmaceutical manufacturing.
Impact
Established stable supply system for high-quality products

Sustainability

  • Development and promotion of environmentally friendly agrochemicals
  • Waste reduction and recycling enhancement at factories
  • Improvement of working environment and promotion of employee health
  • Outreach activities to support sustainable agriculture
  • Provision of water treatment technologies for water quality purification
  • CO2 reduction through introduction of energy-saving equipment