NaITO

Basic Information

Stock Code
7624
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
January 1953
Listing Year
December 1999
Official Website
https://www.naito.net/
TSE Information
TSE Information
Yahoo! Finance
Yahoo! Finance
Other Companies
Palemo HD, OptoEle, Feed Force G, Torque, Trusco Nakayama, Uematsu Shokai, Sugimoto Shoji

Overview

NaITO is a leading wholesaler specializing in cutting tools and other machine tools, headquartered in Tokyo and founded in 1953.

Current Situation

NaITO achieved consolidated sales of approximately 44.1 billion yen and net assets of approximately 12.8 billion yen in the fiscal year ending February 2024, maintaining a stable business foundation. It holds a top-class market share primarily in the cutting tools sector, supplying a wide range of tools and machinery to domestic and international manufacturing industries. As a subsidiary of Okaya & Co., it has strengthened its purchasing power and sales network. Its core business is the wholesale of tools and dies, with expansion into industrial machinery and equipment wholesale, supported by a diverse customer base. By actively expanding logistics centers and establishing sales offices nationwide, it has built a rapid supply system. In recent years, it has pursued business efficiency and IT utilization, enhancing sales management systems and strengthening collaboration with overseas affiliates to boost international competitiveness. It also focuses on sustainable management, expanding its handling of environmentally friendly products and optimizing logistics to reduce CO2 emissions. Looking ahead, it aims for growth by expanding sales channels through digital technology and developing new industrial machinery sectors.

Trivia

Interesting Facts

  • Initially started as Naito Shoten, specializing in machine tool tools.
  • Handles top share of cutting tools in the industry.
  • Capital and sales power strengthened by becoming subsidiary of Okaya & Co.
  • Has affiliates in Vietnam, Thailand, and China, advancing Asia expansion.
  • East Japan Logistics Center in Ota, Gunma, is the largest scale in North Kanto.
  • Contributes to customer cost reduction through tool regrinding service.
  • Extensive branch network covering nationwide logistics system.
  • Industry-leading technical staff providing specialized customer support.
  • Strengthened region-specific sales to meet return-to-hometown demand.
  • Strength in automatic tool exchange systems for machine tools.
  • Enhances technical capabilities through collaboration with affiliates for new product development.
  • Early adoption of environmentally friendly tool sales.
  • Achieved business reconstruction after large-scale debt forgiveness from trading banks in 2004.
  • Transitioned to company with audit and supervisory committee, strengthening corporate governance.
  • Developed proprietary IT systems to improve sales management efficiency.

Hidden Connections

  • Close collaboration and synergy under Okaya & Co. Group through capital ties.
  • Accelerating Asian market entry through collaboration with affiliates in Vietnam, Thailand, and China.
  • Logistics center efficiency contributes to productivity improvements for many domestic manufacturing customers.
  • Many clients are major manufacturing companies, supporting the foundation of domestic industry.
  • Tool regrinding service serves as a key differentiator from other trading companies.
  • Advancing wholesale of industrial robot-related products, strengthening ties with automation sector.
  • Indirectly contributing to customers' DX advancement through IT support.
  • Handling of environmentally responsive products is a key initiative influencing future industry standards.

Future Outlook

Growth Drivers

  • Increasing demand for high-precision tools in domestic manufacturing
  • Growth in Asian manufacturing markets and affiliate expansion
  • Sales channel expansion and efficiency through digitalization
  • Market expansion for environmentally friendly products
  • Growing needs for automation and labor-saving in industrial machinery
  • Improved customer satisfaction via strengthened logistics network
  • Expansion of recycling and used tool markets
  • Rising demand for education and training
  • Deepened operational efficiency through IT tool adoption
  • Enhanced overseas market expertise through affiliate collaboration
  • Improved service quality through engineer development
  • Risk diversification through diversified product expansion

Strategic Goals

  • Establish position as top domestic cutting tool wholesaler
  • Double sales in Asia through affiliate collaboration
  • Greenify logistics bases and reduce CO2 emissions by 50%
  • Achieve over 30% sales ratio from digital sales channels
  • Reach over 70% sales ratio for environmentally responsive products
  • Nationwide rollout and monetization of tool regrinding service
  • Enhance specialized capabilities through employee technical education
  • Enter new industrial machinery sectors and develop new products
  • Strengthen sustainable management structure and governance
  • Gain social trust through deepened regional community collaboration

Business Segments

Tool Wholesale for Manufacturing

Overview
Specializes in wholesaling tools and machine tool-related products to a wide variety of manufacturing industries.
Competitiveness
Deep technical knowledge as a specialty trading company and rapid supply system
Customers
  • Automotive parts manufacturers
  • Electronics manufacturers
  • Machine tool manufacturers
  • Metal processing factories
  • Aircraft parts manufacturers
  • Home appliance manufacturers
  • Equipment maintenance companies
  • Shipyards
Products
  • All cutting tools
  • Machine tool parts
  • Precision measuring instruments
  • Tool holders
  • Industrial consumables
  • Automatic tool exchange systems

Wholesale for Logistics and Distribution

Overview
Wholesale business stably supplying products via nationwide logistics centers.
Competitiveness
Nationwide logistics network and inventory management capabilities
Customers
  • Logistics centers
  • Sales agents
  • Tool specialty retailers
  • Factory equipment sales companies
Products
  • Cutting tools
  • Measuring instruments
  • Tool accessories
  • Maintenance parts

Overseas Affiliate Collaboration Business

Overview
Business expansion integrating exports and local procurement through collaboration with affiliates.
Competitiveness
Deep market understanding and local networks in Asia
Customers
  • Vietnamese manufacturers
  • Thai industrial equipment companies
  • Chinese tool manufacturers
Products
  • Machine tools for export
  • Local production support parts
  • Industrial robot parts

Industrial Machinery Maintenance Support

Overview
Provision of products and services for industrial machinery maintenance.
Competitiveness
Extensive tool lineup and specialized knowledge
Customers
  • Manufacturing maintenance departments
  • Equipment maintenance service companies
Products
  • Various tools
  • Replacement parts
  • Dedicated maintenance equipment

Specialty Tool Development and Sales

Overview
Differentiates through development and sales of specialty tools for precision machining.
Competitiveness
Customization capabilities through collaboration with engineers
Customers
  • Special processing businesses
  • Key factories
  • R&D departments
Products
  • High-precision specialty tools
  • Custom-designed cutting tools
  • Metalworking support equipment

Environmental and Safety Equipment Wholesale

Overview
Offers products to improve workplace safety and health.
Competitiveness
Product selection compliant with safety standards
Customers
  • Factory environmental management companies
  • Manufacturing safety management departments
Products
  • Safety protective gear
  • Environmental measuring instruments
  • Work environment improvement accessories

Education and Training Support Business

Overview
Provides tools and materials necessary for engineer training.
Competitiveness
Abundant educational materials and specialized know-how
Customers
  • Vocational training schools
  • Technical training centers
Products
  • Educational tool sets
  • Technical instruction materials
  • Training measuring instruments

Recycling and Used Machinery Sales

Overview
Supports circulation of used machinery to reduce environmental impact and costs.
Competitiveness
Broad used market network and appraisal capabilities
Customers
  • Medium-sized factories
  • Startups
Products
  • Used cutting tools
  • Used machine tools
  • Recycled parts

IT Support Tool Sales

Overview
Deploys IT tools contributing to efficiency in sales and logistics operations.
Competitiveness
Customization tailored to on-site needs
Customers
  • Manufacturing sites
  • Logistics businesses
Products
  • Sales management software
  • Inventory management systems
  • Tool traceability tools

Industrial Robot Sales and Maintenance

Overview
Wholesales robot-related products supporting production line automation.
Competitiveness
Extensive product knowledge and rapid maintenance response
Customers
  • Manufacturing lines
  • Automotive assembly factories
Products
  • Industrial robots
  • Maintenance services
  • Peripheral equipment

Competitive Advantage

Strengths

  • Industry-leading volume of cutting tools handled
  • Strong financial base under Okaya & Co. Group
  • Rapid supply system via nationwide logistics centers
  • Network of branches and offices across multiple regions
  • Customer support backed by high-level technical expertise
  • Asia expansion through collaboration with overseas affiliates
  • Extensive and diverse product lineup
  • Reliability from long-term transaction history
  • Business efficiency through IT advancement
  • Customization responsive to customer needs
  • Handling of sustainable products
  • Employee technical training and skill development programs
  • Maintaining high financial soundness
  • Strong customer base and high repeat rate
  • Specialty trading company focused on manufacturing

Competitive Advantages

  • Stable purchasing and sales power as part of Okaya & Co. Group
  • Rapid supply through nationwide logistics network
  • Specialized technical support for cutting tools
  • One-stop provision of wide-ranging products including industrial machinery and measuring instruments
  • Optimization of inventory management and sales efficiency via IT systems
  • Competitive edge in Asian markets through overseas affiliate collaboration
  • Proposal capabilities matching customer needs from extensive products
  • High-quality sales and technical staff leveraging long industry experience
  • Strengthened customer relations through region-specific sales
  • Improved delivery compliance via rapid logistics
  • Broad customer network covering diverse industries
  • Provision of environmentally conscious product lineup
  • Stable management environment backed by strong capital
  • Service enhancement through introduction of advanced technologies
  • Added value through customized services per customer

Threats

  • Risk of intensified competition from new entrants
  • Demand decline due to restrained capital investment in manufacturing
  • Rising product costs from raw material price increases
  • Market shrinkage from overseas relocation of domestic manufacturing
  • Risk of failing to keep pace with rapid technological innovation
  • Unstable pricing of imported products due to exchange rate fluctuations
  • Profit pressure from rising logistics costs
  • Increased compliance costs from stricter environmental regulations
  • Decline in trading company role from customers' direct procurement expansion
  • Supply chain disruptions from novel infectious diseases
  • Market share loss from competitors' strengthened IT utilization
  • Growth slowdown from maturation of industrial machinery market

Innovations

2023: Advanced IT Sales Management System

Overview
Renewed sales and inventory management systems to achieve real-time integration.
Impact
20% improvement in operational efficiency, enhanced delivery management accuracy

2022: Expansion of East Japan Logistics Center

Overview
Added large-scale logistics center in Ota City, Gunma Prefecture, to strengthen logistics capabilities.
Impact
15% increase in shipping capacity, improved delivery speed

2024: Promotion of Asia Expansion through Strengthened Affiliate Collaboration

Overview
Enhanced product development and supply cooperation with local entities in Vietnam, Thailand, and China.
Impact
10% increase in overseas sales, stabilized export product quality

2021: Introduction of Environmentally Friendly Cutting Tools

Overview
Launched new tools with reduced environmental impact in materials and manufacturing processes.
Impact
5% increase in ratio of environmentally certified products

2023: Launch of Tool Regrinding Sales Service

Overview
Started providing regrinding and maintenance services after tool purchase.
Impact
Improved customer satisfaction and 10% increase in repeat rate

Sustainability

  • Introduction of energy-saving equipment at logistics centers
  • Expansion of environmentally friendly tool lineup
  • Efforts to improve waste recycling rate
  • Strengthened internal environmental education and awareness
  • Collaborative activities with customers to reduce product environmental impact
  • Formulation and implementation of CO2 emission reduction plans
  • Resource reduction through digitization from paper media
  • Adoption of low-environmental-impact packaging materials
  • Institutional improvements for a better workplace
  • Participation in regional environmental conservation activities
  • Introduction of environmental standards for suppliers
  • Promotion of green procurement