Nichigas

Basic Information

Stock Code
8174
Industry
Retail
Category Detail
Electric Power & Gas
Prefecture
Tokyo
Establishment Year
July 1955
Listing Year
February 1973
Official Website
https://www.nichigas.co.jp/
TSE Information
TSE Information
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Other Companies
TOKAI Holdings, Chubu Steel Plate, Max, Kimura Unitech, Tokyo Gas, Osaka Gas, Toho Gas, Hokkaido Gas, Hiroshima Gas, Saibu Gas Holdings, Hokuriku Gas, Keiyo Gas, Shizuoka Gas

Overview

Nichigas is a leading company founded in 1955, primarily supplying LP gas and city gas centered in the Kanto and Chubu-Tokai areas.

Current Situation

Nichigas recorded consolidated sales of 162.552 billion yen for the fiscal year ended March 2022, holding a high market share in the greater Kanto area as Japan's largest LP gas provider. The company is expanding its city gas business through group companies and has established a stable, community-focused supply system. In recent years, it has improved sales efficiency, expanded its supply network, and strengthened its customer base. Environmentally, it has obtained ISO 14001 certification and is promoting a shift to city gas business, actively addressing a decarbonized society. In 2024, it consolidated its energy retail operations and achieved business integration within the group. Following administrative penalties for violations of the Specified Commercial Transactions Act, it is strengthening compliance. Moving forward, it aims for sustainable medium- to long-term growth by leveraging digital technologies and developing new businesses.

Trivia

Interesting Facts

  • Founded in 1955 by the eldest son of the Iwata Sangyo founder.
  • Has a history of supplying gas for the Olympic flame at the Tokyo Olympics.
  • Headquarters repurposed from the former Square Enix Aoyama building.
  • Renewed logo in 2016 to an Italian-style NICIGAS.
  • Possesses a wide-area sales office network across Kanto, Yamanashi, and Shizuoka.
  • Received business suspension for legal violations in door-to-door sales in 2023.
  • Subsidiary Tozai Gas changed name to Energy Universe in 2024.
  • Member of Midori-kai and Sanwa Group, rooted in the local community.
  • Has numerous affiliates and is strengthening group management.
  • Uses celebrities in web media and commercials for brand promotion.
  • Implements hybrid expansion of city gas and LP gas supply.
  • Established Tokyo Energy Alliance jointly with Tokyo Electric Energy Partner.
  • Ranks as Kanto's largest in LP gas supply volume.
  • Actively promoting environmental initiatives in the energy industry.
  • Striving to expand customer touchpoints using diverse sales channels.

Hidden Connections

  • Deep ties to Iwata Sangyo's founding family influence corporate culture.
  • Rare asset utilization of former Square Enix headquarters building.
  • Affiliated with Midori-kai and Sanwa Group, collaborating with major firms across industries.
  • Major shareholders include major trust banks and Tokyo Electric group.
  • Strengthening city gas expansion in Chubu and Koshinetsu via subsidiary Tozai Gas.
  • Door-to-door sales violation incident drew significant industry attention and discussion.
  • Implemented advanced employee welfare through digital payroll introduction.
  • Expanding electricity and energy retail via Tokyo Energy Alliance establishment.

Future Outlook

Growth Drivers

  • New customer acquisition and sales growth through city gas business expansion
  • Promotion of environmentally considerate energy supply for decarbonized society
  • Operational and service efficiency via digital technology adoption
  • Optimization of management resources and synergy effects from group integration
  • Corporate credit recovery and improvement through strengthened compliance
  • Development and provision of products addressing diversifying customer needs
  • Expansion into energy-saving equipment and renewables
  • Business area expansion through new market development and cross-industry collaborations
  • Customer satisfaction improvement via strengthened community services
  • Enhanced cost competitiveness through advanced logistics networks
  • Brand value enhancement by balancing safety improvements and environmental compliance
  • Organizational strength improvement through talent development and workstyle reforms

Strategic Goals

  • Expand city gas supply share in Kanto and Chubu regions
  • Advance decarbonization of supply systems to reduce environmental impact
  • Complete full digital infrastructure introduction and service innovation
  • Strengthen governance to support sustainable management
  • Deploy diverse energy services from customer perspective
  • Further enrich community contribution activities
  • Improve profitability through group business efficiency
  • Diversify sales through entry into new business areas
  • Continuously acquire and comply with ISO and other international standards
  • Establish industry-leading trust through advanced legal compliance

Business Segments

Industrial Gas Supply

Overview
Stably supplies various gases and related equipment to the manufacturing industry, supporting production efficiency improvements.
Competitiveness
Maintains extensive supply network and safety management system centered in Kanto
Customers
  • Manufacturing
  • Food Processing
  • Chemicals
  • Steel
  • Electronics Parts Manufacturers
  • Automotive Related
  • Shipbuilding
  • Machinery
Products
  • Liquefied Natural Gas
  • Propane Gas Cylinders
  • Gas Appliances
  • Industrial Burners
  • Air Conditioning Equipment
  • Energy Supply
  • Safety Services
  • Maintenance

Equipment Construction for Residential and Commercial Facilities

Overview
Specializes in design and construction of gas and air conditioning equipment for residential and commercial facilities.
Competitiveness
Environmentally considerate construction system with ISO 14001 certification
Customers
  • Home Builders
  • Construction Companies
  • Real Estate Companies
  • Commercial Facility Operators
  • Remodeling Companies
Products
  • Gas Piping Work
  • Air Conditioning Installation
  • Water Heater Installation
  • Central Control Systems
  • Disaster Prevention Equipment

Energy Retail Business

Overview
Provides integrated energy supply and related services tailored to diverse customer segments.
Competitiveness
Stable supply leveraging Nichigas Group's wide-area network
Customers
  • Individual Households
  • Small and Medium Enterprises
  • Factories and Business Sites
  • Stores and Restaurants
  • Public Facilities
Products
  • LP Gas
  • City Gas
  • Electricity Sales
  • Gas Appliance Sales
  • Maintenance and Inspection Services

Logistics and Delivery Services

Overview
Provides safe and reliable logistics services for gas containers and products, contributing to customer supply stability.
Competitiveness
Extensive depot station network and well-maintained vehicle fleet
Customers
  • Gas Retailers
  • Manufacturing
  • Trading Companies
  • Retail
Products
  • LP Gas Delivery
  • Gas Cylinder Collection
  • Industrial Gas Delivery
  • Tank Truck Operations

Development and Sales of Gas-Related Equipment

Overview
Develops, sells, and installs a variety of gas appliances under the Nichigas brand.
Competitiveness
Safety-focused design emphasizing quality and close customer support
Customers
  • Distribution
  • Energy Wholesalers
  • Individual Consumers
  • Factory Equipment Managers
Products
  • Gas Stoves
  • Water Heaters
  • Hot Water Boilers
  • Security Devices
  • Energy-Saving Appliances

New Energy and Environmental Business

Overview
Promotes development and dissemination of environmentally considerate products for a sustainable energy society.
Competitiveness
High-quality environmental response system backed by ISO 14001
Customers
  • Municipalities
  • Environmental Consultants
  • Energy Companies
  • Corporate Environmental Departments
Products
  • Environmentally Friendly City Gas Plans
  • Renewable Energy Supply
  • Energy-Saving Support
  • Environmental Consulting

Corporate Energy Management

Overview
Supports energy efficiency to achieve cost reductions and lower environmental impact.
Competitiveness
Advanced systems and extensive operational expertise
Customers
  • Large Factories
  • Commercial Buildings
  • Hospitals
  • Schools
Products
  • Energy Usage Optimization Services
  • Demand Forecasting Systems
  • Energy Consulting
  • Equipment Maintenance and Management

Gas Safety Education and Training Services

Overview
Provides education and training services to promote safe gas usage.
Competitiveness
Expertise based on years of experience
Customers
  • Gas Retailers
  • Contractors
  • Municipal Staff
  • General Consumers
Products
  • Safety Training Programs
  • Technician Workshops
  • Consumer Gas Safety Awareness
  • Qualification Support

Maintenance and Repair Services

Overview
Contributes to safety assurance through 24-hour maintenance services.
Competitiveness
Rapid and reliable response system
Customers
  • Individual Households
  • Condominium Management Associations
  • Commercial Facilities
  • Industrial Facilities
Products
  • Gas Appliance Inspections
  • Malfunction Repairs
  • Equipment Upgrade Proposals
  • Emergency Response Services

Energy Efficiency Equipment Sales

Overview
Sales and support for introducing energy efficiency equipment to achieve energy savings.
Competitiveness
Rapid adoption of latest technologies and proven track record
Customers
  • Home Builders
  • Building Management Companies
  • Factory Managers
Products
  • High-Efficiency Water Heaters
  • Energy-Saving Heaters
  • Heat Recovery Systems

Related Materials and Parts Supply

Overview
Stably supplies essential materials and parts for gas supply equipment.
Competitiveness
Logistics system supporting diverse small-lot orders
Customers
  • Contractors
  • Gas Retailers
  • Maintenance Managers
Products
  • Piping Materials
  • Fittings and Valves
  • Safety Equipment
  • Inspection Equipment

Communications and System Solutions

Overview
Supports efficiency in energy supply and customer services using IT technologies.
Competitiveness
In-house developed systems and high operational expertise
Customers
  • Group Companies
  • Energy Companies
  • Management Companies
Products
  • Energy Management Systems
  • Customer Management Systems
  • Smart Meters
  • Digital Payment Services

Competitive Advantage

Strengths

  • Largest LP gas provider in Kanto region
  • Expanding city gas supply
  • Broad sales area
  • Stable supply system
  • ISO 14001 certified
  • Group business integration
  • Diverse energy services
  • Solid financial base
  • Strengthened energy retail business
  • Diverse sales channels
  • Advanced safety management
  • Community-focused services
  • Abundant group of affiliates
  • Comprehensive equipment construction system
  • Effective sales office network

Competitive Advantages

  • Deploys robust LP gas supply network centered in Kanto, maintaining top regional share
  • Flexible response to customer needs through hybrid city gas and LP gas supply
  • Promotes management efficiency and optimal resource allocation through group collaboration
  • Meets high standards in environment and safety, including ISO 14001
  • Maximizes customer touchpoints through diverse sales channels
  • Improves customer satisfaction with expert equipment installation and maintenance
  • Aggressive investments and technology adoption in new energy businesses
  • Stable support from strong capital ties and major shareholders
  • Trust recovery efforts through strengthened compliance post-administrative penalties
  • Logistics efficiency from enriched tank truck and depot station networks
  • Business portfolio accommodating diverse customer segments
  • Improved convenience through digital payments and services
  • Enhanced brand image via community collaboration
  • Maintains competitiveness with business transition plans in select areas
  • Service development system responding to diverse customer needs

Threats

  • Business constraints from stricter energy market regulations
  • Compliance risks and credit decline related to door-to-door sales
  • Intense competition from major gas companies
  • Profit pressure from energy price fluctuations
  • Rapid shift pressure to decarbonization and renewables
  • Supply equipment damage risks from natural disasters
  • Customer shift to all-electric homes
  • Impact on stable supply from fuel supply disruptions
  • Demand decline risks from population decrease
  • Low-price competition from new entrants
  • Customer loss risks from social credit decline
  • Accident risks from aging gas supply pipes

Innovations

2024: Group Reorganization for Energy Retail Consolidation

Overview
Consolidated Nichigas Group's retail operations under Nichigas for efficiency.
Impact
Achieved optimization of management resources and strengthened revenue base.

2023: Introduction of Digital Payroll Services

Overview
Adopted digital payment services for part of employee salaries to improve convenience.
Impact
Improved employee satisfaction and operational efficiency.

2022: Sequential Business Transition Plan from Simple Gas to City Gas

Overview
Expanding city gas supply to housing complexes using existing gas pipes.
Impact
Reduced environmental impact and enhanced customer services.

2021: Launch of Enhanced Safety Management Program

Overview
Strengthened inspection and education systems for occupational safety and health.
Impact
Improved accident prevention and regulatory compliance reliability.

2020: Logistics Network Optimization for Delivery Efficiency

Overview
Reviewed depot stations and optimized delivery routes.
Impact
Reduced logistics costs and improved supply stability.

Sustainability

  • ISO14001 Environment Management System
  • Greenhouse gas emission reductions through city gas supply expansion
  • Promotion of business transition from simple gas to city gas
  • Equipment updates and efficiency improvements for reduced environmental impact
  • Strengthened collaboration with local communities on environmental conservation
  • Labor accident prevention through safety inspections and education
  • Exploration and introduction of renewable energy utilization
  • Promotion of in-house energy-saving actions and external awareness activities
  • Formulation of long-term plans for sustainable supply systems