KVK

Basic Information

Stock Code
6484
Industry
Machinery
Category Detail
Construction Materials & Equipment
Prefecture
Gifu Prefecture
Establishment Year
January 1949
Listing Year
November 1993
Official Website
https://www.kvk.co.jp/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Asahi Yukizai, Nippon Chutetsukan, SANEI, Maezawa Kyuso Kogyo, Maezawa Kasei Kogyo, Taiun, Genex

Overview

KVK is a leading faucet manufacturer founded in 1939, holding a high market share domestically and internationally with bathroom and kitchen products as its mainstays.

Current Situation

KVK recorded consolidated net sales of approximately 24.5 billion yen and operating profit of approximately 2.3 billion yen in the fiscal year ended March 2020, maintaining a stable revenue base. Faucets for bathrooms and kitchens are the main products, with a manufacturing base in Dalian, China, to advance international expansion. In the 1980s, it developed proprietary products such as 'Oyupita,' enhancing brand recognition. In 2008, it acquired the faucet business from a competitor, expanding its business scale. In 2020, it changed its trade name to KVK Corporation and relocated its head office to the Tomika Factory. It is strengthening transactions with various residential equipment manufacturers, diversifying sales channels, and differentiating from competitors. As part of CSR, it contributes to the local community and reduces environmental impact, while promoting growth strategies to meet increasing overseas market demand.

Trivia

Interesting Facts

  • 1981 'Oyupita' CM greatly expanded company name recognition
  • Founded in 1939, established Kitamura Valve Co., Ltd. immediately after the war
  • Established first overseas manufacturing base in Dalian, China in 1989
  • Head office still located in Tomika Town, Kamo District, Gifu Prefecture as of 2020
  • Only company in faucet industry deploying wide range of DIY market products
  • Established track record as a major brand in residential faucet fittings
  • Major shareholders centered on founding family and local credit unions
  • Acquired faucet business of defunct competitor in 2008
  • Brand penetration through TV commercials significantly differentiates from competitors
  • Approximately 1,100 employees, mid-sized manufacturing company

Hidden Connections

  • Strong collaborative relationships with major residential equipment manufacturers such as Panasonic
  • Operates manufacturing subsidiary in Dalian, Liaoning Province, China, advancing local market development
  • Family management aspect emphasizing lineage from former Kitamura Foundry
  • Inherited faucet business from Kitamura Alloy Manufacturing and achieved business expansion
  • Sole sponsor of multiple TV programs in Tokai region, deeply rooted in the community
  • Regular member of Japan DIY Home Center Association, corresponding to diverse distribution channels
  • Veteran mid-sized electrical machinery manufacturer listed on TSE Standard Market since 1993
  • Local companies such as Kitamura Kosan provide capital support as shareholders

Future Outlook

Growth Drivers

  • Increasing replacement demand from expanding residential remodeling market
  • Demand expansion for water-saving and energy-saving products due to rising environmental awareness
  • Sales expansion in overseas markets, especially China and Asia
  • Increased development of IoT-compatible products for smart homes
  • Customer base expansion through diverse sales channels
  • New project acquisition through strengthened collaboration with major residential equipment companies
  • Brand value enhancement through improved durability and functionality
  • Stable growth in repair and maintenance market
  • Manufacturing efficiency improvement through digital technology utilization
  • Strengthened response to sustainability demands
  • Service enhancement aimed at improving customer satisfaction
  • Quality assurance system reinforcement through employee skill improvement

Strategic Goals

  • Achieve 50% sales ratio of energy-saving and water-saving products domestically and internationally
  • Improve production efficiency at Dalian base by 30%
  • Achieve 20% market share for new IoT-linked faucet products
  • Reach 100% sustainable resource procurement rate
  • Ongoing promotion of contributions to local communities and environmental load reduction activities
  • Achieve net sales over 30 billion yen and improved profitability
  • Improve customer satisfaction through development of diverse product lines
  • Complete company-wide digital transformation
  • Establish organizational culture respecting human resource development and diversity
  • Acquire international certifications for safety and quality management systems

Business Segments

Supply to Residential Equipment Manufacturers

Overview
Supplies parts to major residential equipment manufacturers, with KVK products adopted in various products.
Competitiveness
Reliability based on high-quality manufacturing technology and long track record of transactions
Customers
  • Panasonic Homes
  • Clean Up
  • Takara Standard
  • LIXIL
  • TOTO
  • Sankyo Tateyama
  • Home Builders
  • Residential Equipment Manufacturers
Products
  • Faucets
  • Piping Fittings
  • Bathroom Fittings
  • Water-Saving Parts
  • Temperature Control Equipment
  • Water Purifier Connection Components
  • Drain Fittings
  • Hot Water Valves

Commercial Facilities & Public Equipment

Overview
Provides high-durability products tailored to water environments in commercial facilities and public equipment.
Competitiveness
Product design combining durability and ease of maintenance
Customers
  • Commercial Facility Management Companies
  • Public Institutions
  • Hospitals & Schools
  • Hotels
  • Restaurants
  • Factory Equipment Management
Products
  • High-Durability Faucets
  • Commercial Piping Parts
  • Anti-Corrosion & Rust-Proof Fittings
  • Water-Saving Control Devices
  • Large Drainage Systems

Building Materials Stores & Distribution

Overview
Provides diverse products for construction sites and general consumers, building a wide distribution network.
Competitiveness
Rich product lineup and support system
Customers
  • Residential Building Materials Wholesalers
  • Local Building Materials Stores
  • Wholesalers
  • Home Centers
  • DIY Shops
Products
  • Faucet Sets
  • Piping Fitting Components
  • Repair Parts
  • DIY Easy Faucets
  • Water-Saving Related Products

Overseas Market Business

Overview
Expanding local sales through overseas manufacturing bases centered on Dalian, China.
Competitiveness
Cost competitiveness through local manufacturing and collaboration
Customers
  • China Market
  • Southeast Asian Countries
  • Overseas Builders
  • Exporters
Products
  • Faucets
  • Piping Parts
  • Bathroom Parts

Maintenance & Repair Service Companies

Overview
Enriches parts and tools necessary for water area repairs.
Competitiveness
Abundant parts inventory and technical support
Customers
  • Residential Management Companies
  • Remodeling Contractors
  • Repair Specialists
Products
  • Replacement Packing Sets
  • Cartridges
  • Faucet Repair Parts
  • Repair Tool Kits

Environmental Equipment & Energy-Saving Device Manufacturers

Overview
Provides product categories contributing to environmental load reduction.
Competitiveness
Adoption of latest technologies compliant with environmental regulations
Customers
  • Energy-Saving Device Manufacturers
  • Environmental Business Operators
  • Eco Product Sellers
Products
  • Water-Saving Faucets
  • Energy-Saving Valves
  • Water-Saving Control Units

Products for Residential Remodeling Contractors

Overview
Offers user-friendly products specialized for the residential remodeling market.
Competitiveness
Products with high ease of installation and diversity
Customers
  • Remodeling Companies
  • Residential Equipment Upgraders
  • DIY Remodeling Users
Products
  • Remodeling Faucets
  • Replacement Parts
  • Maintenance Kits

Material Supply for Construction Contractors

Overview
Provides reliable material supply for construction sites.
Competitiveness
Rapid supply and inventory management system
Customers
  • Local Builders
  • House Builders
  • Residential Constructors
Products
  • Water Supply & Drainage Piping Materials
  • Faucets
  • Auxiliary Components

Products for Equipment Design & Construction Companies

Overview
Provides equipment and components compatible from design to construction.
Competitiveness
Flexibility for customization
Customers
  • Equipment Design Offices
  • Construction Contractors
  • Maintenance Contractors
Products
  • Water Supply Equipment
  • Piping Fittings
  • Temperature Control Devices

Maintenance Supplies for Real Estate Management Companies

Overview
Sells repair products necessary for maintaining managed properties.
Competitiveness
Long-term supply system and technical support
Customers
  • Condominium Management Associations
  • Real Estate Management Companies
  • Rental Housing Managers
Products
  • Repair Parts
  • Faucet Replacement Components
  • Maintenance Kits

Products for Residential Equipment Wholesalers

Overview
Provides a wide product lineup for wholesalers.
Competitiveness
Large lot handling and rapid delivery
Customers
  • Equipment Wholesalers
  • Building Materials Wholesalers
Products
  • Standard Faucets
  • Piping Fittings
  • Repair Parts

Collaborative Products for Tool Manufacturers

Overview
Supplies repair-related products in collaboration with tool manufacturers.
Competitiveness
High-quality parts and support services
Customers
  • Tool Manufacturing Companies
  • Maintenance Contractors
Products
  • Faucet Repair Tools
  • Replacement Parts Kits

Competitive Advantage

Strengths

  • High-quality faucet manufacturing capability from years of technological accumulation
  • Ownership of local manufacturing base in Dalian, China
  • Strong transaction relationships with major residential equipment companies
  • Market responsiveness through diverse product lineup
  • Exceptional brand recognition
  • Extensive domestic and international sales channels
  • Stable financial base
  • Comprehensive energy-saving and water-saving technologies
  • One-stop provision from repair parts to finished products
  • Corporate stance fulfilling social responsibilities
  • Rapid customer response capability
  • Solid management system
  • Development capability for environmentally regulated products
  • Acquisition of long-term customer trust
  • Nationwide service network through major branches

Competitive Advantages

  • Domestic largest-scale faucet manufacturing know-how and technology
  • Overseas production system including China
  • Stable orders from long-term transactions with diverse residential equipment manufacturers
  • Advanced development and dissemination of high-function water-saving products
  • Brand power and reliability in the residential equipment market
  • Multi-faceted sales network covering builders and DIY users
  • Differentiation through broad product deployment in repair field
  • Provision of high-quality products meeting environmental and safety standards
  • Product customization capability
  • Rapid development and market launch system
  • Price competitiveness from low-cost production in Dalian, China
  • Product lineup leveraging regional characteristics
  • High customer satisfaction and repeat rate
  • Corporate image balancing social contributions and environmental considerations
  • Stable manufacturing quality and inspection system

Threats

  • Intensifying price competition with low-cost overseas products
  • Impact from economic fluctuations in housing market
  • Market share erosion by new entrants
  • Raw material price fluctuation risks
  • Cost increases from strengthened environmental regulations
  • Production base risks from natural disasters
  • Rising labor costs in China
  • Trends toward in-house production by residential equipment manufacturers
  • Demand decline from changes in consumer preferences
  • Exchange rate fluctuation risks
  • Sales opportunity fluctuations from distribution channel changes
  • Impact of international trade regulations and tariffs

Innovations

2023: Eco Water-Saving Shower Head Development

Overview
Launched shower head equipped with new technology balancing water savings and pressure.
Impact
Contributes to environmental load reduction with 30% improvement in water savings rate.

2022: Smart Faucet Controller Introduction

Overview
Developed IoT-compatible faucet controller to improve convenience.
Impact
Promotes smartization of residential equipment.

2024: Dalian Factory Production Line Automation

Overview
Introduced robot automation to improve production efficiency.
Impact
Succeeded in 20% production capacity increase and cost reduction.

2021: Recycled Material Piping Parts Development

Overview
Launched piping parts using environmentally friendly recycled raw materials.
Impact
Reduces environmental impact and strengthens sustainability.

2020: Improved Bathroom Faucet with Temperature Adjustment Function

Overview
Enhanced product power by equipping new mechanism for stable water temperature.
Impact
Significantly improved customer satisfaction.

2023: New Low-Noise Faucet Development

Overview
Began providing quiet design faucet that suppresses sound of flowing water.
Impact
Contributes to improved residential comfort.

2024: Improved Water-Saving Resin Fittings

Overview
Improved resin material to achieve leak prevention and higher water savings rate.
Impact
High evaluation at construction sites and expanded orders.

Sustainability

  • Promoting environmental load reduction through energy-saving and water-saving product development
  • Reducing waste and improving recycling rate in manufacturing processes
  • Strengthening environmental regulation compliance at Dalian factory in China
  • Implementing environmental education programs for local communities
  • Formulation and implementation of sustainable resource procurement policies
  • Reducing waste through product longevity
  • Employee environmental awareness improvement activities
  • CO2 emission reduction through energy efficiency improvements
  • Ongoing promotion of environmentally harmonious product design
  • Maintaining ISO14001 and other environmental management certifications
  • Providing environmental information to customers and awareness activities
  • Regional cleanup activities and natural conservation support