Tokyo Sangyo

Basic Information

Stock Code
8070
Industry
Wholesale
Category Detail
Building Materials, Electrical Equipment & Metal Wholesalers
Prefecture
Tokyo
Establishment Year
April 1942
Listing Year
October 1961
Official Website
http://www.tscom.co.jp/
TSE Information
TSE Information
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Other Companies
Asia Pile, Furusato Maruka Holdings, Nishikawa Keisoku, Shinwa, Yamazen, Tsubakimoto Chain, Saika Industries, Kanaden, Tachibana Eletech, Inotech, Nichiden, Tohtec

Overview

Tokyo Sangyo is a Mitsubishi-affiliated comprehensive machinery trading company founded in 1942, with a wide network both domestically and internationally, engaging in the wholesale of a broad range of industrial machinery and materials.

Current Situation

Tokyo Sangyo recorded consolidated sales of approximately ¥113.7 billion and net profit of approximately ¥1.86 billion for the fiscal year ended March 2021, maintaining stable performance. In its core machinery and plant-related wholesale business, it is expanding its customer base domestically and internationally, centered on Mitsubishi Heavy Industries products. It has 17 bases in Japan and 17 overseas, with its strength lying in multinational and diversified business development. It is actively investing in new businesses such as solar power generation, ice-making plants, and packaging materials, and is also pursuing M&A. The company has established an Audit and Supervisory Committee, strengthening governance and aiming for sustainable growth. It promotes management conscious of regional social contributions and environmental considerations, with a medium- to long-term strategy focused on enhancing trading company functions and developing new areas. Differentiation from competitors comes from its extensive sales channels and the stable transaction base of the Mitsubishi Group. It anticipates stable growth backed by steady infrastructure-related demand domestically and internationally.

Trivia

Interesting Facts

  • Machinery trading company bearing one pillar of the Mitsubishi Group since its founding in 1942.
  • Global company with a total of 34 bases domestically and internationally.
  • Ice-making plant business is a key field supporting the food industry from behind the scenes.
  • Successfully diversified business through M&A in packaging materials.
  • Few specialized trading companies with Mitsubishi Heavy Industries machinery as the mainstay.
  • Deploys 17 bases in Japan and 17 overseas to address diverse markets.
  • Diversified management also handling wholesale of industrial chemicals and environmental chemical products.
  • Internal audit system established beyond industry standards.
  • Management team composed of multiple Mitsubishi alumni, strengthening group collaboration.
  • Known for proactive efforts in reducing environmental impact and sustainable management.
  • Maintains stable financial base over many years with high creditworthiness.
  • Highly evaluated as a technology proposal-type trading company that improves customer production efficiency.
  • New revenue pillar emerging from solar power equipment sales.
  • Abundant handling of inspection equipment and robots contributing to productivity improvement.
  • Deploys domestic top-class share in food freezing ice-making plants.

Hidden Connections

  • Strong capital and business ties with Mitsubishi Group companies such as Mitsubishi Power and Mitsubishi Corporation.
  • Positioned as a core trading company in Mitsubishi Heavy Industries' industrial machinery supply chain.
  • Collaborates with partner companies in environmental chemical business for joint product development to strengthen market competitiveness.
  • Overseas bases include Europe, US, Asia, as well as Mexico and Hungary.
  • Successfully expanded trading company functions broadly through M&A in packaging materials field.
  • Many former Mitsubishi Corporation executives in management, deeply involved in group strategy.
  • Regularly holds study sessions and information dissemination on environmental sustainability internally and externally.
  • Unique business model in building materials, electrical machinery, and metal wholesale industry, responding to diverse market needs.

Future Outlook

Growth Drivers

  • Stable expansion of demand for industrial machinery and plants domestically and internationally
  • Market growth and dissemination promotion of renewable energy equipment
  • Strengthening revenue base through business diversification via M&A
  • Enhancing customer solutions through digitalization and IoT
  • Expanding sales channels in global markets and improving local responsiveness
  • Growth expectations in environmental business amid strengthened regulations
  • Enhanced utilization of Mitsubishi Group's brand value and networks
  • Increasing demand for labor-saving and automation equipment amid aging population
  • Market share expansion and customer satisfaction improvement through product and technology innovations
  • Sustainable resource procurement and supply chain resilience
  • Capturing infrastructure development demand in overseas emerging countries
  • Leveraging government industrial policy support measures for domestic manufacturing

Strategic Goals

  • Aim to exceed ¥150 billion in sales
  • Secure overseas sales ratio of over 30%
  • Expand renewable energy business to 20% of total
  • Achieve over 50% ratio of environmental products and services sales
  • Thorough environmental management contributing to sustainable society
  • Improve operational efficiency by 30% through digitalization
  • Expand market share in industrial machinery sector
  • Enhance technological capabilities through human resource development
  • Accelerate new business development via M&A
  • Promote diversity and create comfortable work environment

Business Segments

Industrial Machinery Wholesale

Overview
Wholesales industrial machinery and equipment, providing products to a wide range of fields centered on manufacturing.
Competitiveness
Wide product lineup centered on Mitsubishi Heavy Industries products and extensive domestic and international sales networks
Customers
  • Manufacturing
  • Machinery Manufacturers
  • Construction
  • Electric Power Companies
  • Plant Operators
  • Automotive Industry
  • Electronics Manufacturers
  • Food Processing
  • Environmental Companies
  • Trading Companies
Products
  • Machine Tools
  • Industrial Robots
  • Plant Equipment
  • Packaging Machinery
  • Inspection Equipment
  • Power Tools
  • Solar Power Systems
  • Ice-Making Plants
  • Chemical Products
  • Air Conditioning Equipment

Business Investment and Service Business

Overview
Promotes new business investments and M&A, providing services in related businesses and earning investment returns.
Competitiveness
Diversified business development and stable investment environment through Mitsubishi Group networks
Customers
  • Renewable Energy Operators
  • Packaging Materials Manufacturers
  • Real Estate Lessees
  • Environmental Companies
Products
  • Solar Power Equipment
  • Packaging Materials
  • Real Estate Management Services
  • M&A Support

Machinery Wholesale for Overseas Markets

Overview
Conducts exports and local sales from overseas bases, mainly in China, Southeast Asia, North America, and Europe.
Competitiveness
Flexible response to diversifying overseas markets by quickly meeting local needs
Customers
  • Local Manufacturers
  • Overseas Plant Operators
  • International Trading Companies
Products
  • Industrial Machinery
  • Plant Equipment
  • Packaging Machinery
  • Renewable Energy Equipment

Maintenance and Services

Overview
Provides maintenance and technical services for sold products, improving customer satisfaction and equipment uptime.
Competitiveness
Reliability backed by abundant technical personnel and Mitsubishi Group support
Customers
  • Manufacturing
  • Plant Operators
  • Power Companies
  • Chemical Companies
Products
  • Machinery Maintenance Services
  • Equipment Repairs
  • Technical Consulting

Environmental and Chemical Products Wholesale

Overview
Wholesales high-quality chemicals and related materials to manufacturing and environmental companies.
Competitiveness
High expertise in chemical products and stable supply system
Customers
  • Chemical Manufacturers
  • Environmental Companies
  • Manufacturing
Products
  • Industrial Chemicals
  • Environmental Chemical Products
  • Waste Treatment Equipment

Lifestyle-Related Business

Overview
Provides lifestyle-related materials and real estate rental management to enhance customer convenience.
Competitiveness
Diversified operations and broad customer base
Customers
  • Real Estate Management Companies
  • Residential Equipment Contractors
  • Commercial Facility Management
  • General Consumers
Products
  • Lifestyle-Related Products
  • Equipment Materials
  • Real Estate Rental Management

Competitive Advantage

Strengths

  • Strong backing from the Mitsubishi Group
  • Extensive domestic and international sales network
  • Diverse product lineup and business areas
  • Advanced maintenance and service capabilities
  • Stable financial base and long track record
  • Growth potential through flexible M&A strategy
  • Robust overseas bases and global expansion capabilities
  • Risk diversification through diversification
  • Securing abundant technical staff
  • Management focused on sustainability
  • Competitive edge in industrial machinery wholesale
  • Exclusive handling of Mitsubishi Heavy Industries products
  • Customer-oriented solution provision
  • Expansion into environmental and chemical fields
  • Long-term management planning

Competitive Advantages

  • Strong relationship building with clients based on Mitsubishi Group's reliability
  • Market coverage through extensive sales network of approx. 34 bases domestically and internationally
  • Advanced product knowledge and solution proposal capabilities as a specialized trading company
  • Integrated provision of product maintenance and technical services to enhance customer satisfaction
  • Proactive investment in new fields such as renewable energy
  • Business portfolio optimization through diversified management via M&A
  • Stable demand creation from broad customer base in domestic and international manufacturing
  • Differentiation through exclusive handling rights for Mitsubishi Heavy Industries products
  • Ability to meet market needs with expertise in environmental and chemical product wholesale
  • Favorable transaction terms negotiated through credit based on long track record
  • Ensuring transparency and sound management through strengthened internal governance
  • Building systems to flexibly meet local needs in overseas expansion
  • Risk diversification and stable growth through product deployment across wide industries
  • High technical proposal capabilities contributing to customer productivity improvement
  • Mitsubishi Group brand power supporting new customer acquisition

Threats

  • Risk of demand decline due to contraction in domestic manufacturing production
  • Intensified price competition from emerging companies
  • Procurement cost fluctuations due to exchange rate changes
  • Export/import barriers from overseas political instability and regulatory tightening
  • Risk of delays in adoption of new technologies and products
  • Increased compliance costs from strengthened environmental regulations
  • Long-term domestic market shrinkage due to population decline
  • Risk of M&A failures and integration difficulties
  • Market share loss from competitors' global expansion
  • Rising logistics costs and supply chain risks
  • Rising product costs from resource price surges
  • Potential service quality decline due to engineer shortages

Innovations

2023: Expansion of Solar Power Generation Business

Overview
Strengthening sales of solar power equipment and related machinery in the renewable energy field.
Impact
Secures sales as a new business, contributing to diversification of environmentally friendly products.

2022: Introduction of Latest Ice-Making Plant Equipment

Overview
Established sales system for high-efficiency ice-making plant machinery for the food industry.
Impact
Contributes to customers' energy savings and production efficiency improvements.

2021: Business Base Strengthening via M&A

Overview
Acquired a specialist in packaging materials to expand business scope.
Impact
Achieved revenue diversification and synergy creation in related businesses.

2024: Digitalization Promotion Project Launched

Overview
Currently renewing internal systems for digitalizing order management and inventory control.
Impact
Expected to improve operational efficiency and customer responsiveness.

2020: Environmentally Friendly Chemical Sales

Overview
Promoting introduction of low-environmental-impact chemicals to strengthen environmental business.
Impact
Contributes to supporting customers' sustainable production processes.

Sustainability

  • Promoting dissemination of renewable energy equipment
  • Product procurement conscious of reducing environmental impact
  • Promoting in-house energy-saving and resource-saving initiatives
  • Strengthening environmental audits of supply chains
  • Supporting environmental education for local communities
  • Promoting waste recycling activities
  • Establishing and introducing green procurement standards
  • Environmental awareness programs for employees
  • Obtained ISO14001 environmental management system certification
  • Regular publication of environmental reports
  • Strengthening application of environmental standards to partner companies
  • Promoting decarbonization management