Case Studies

• NSSK III
• Business Succession
• General Manufacturing
• Currently invested

Founded in 1933, Craftz Co., Ltd. has established itself as a globally recognized flexible packaging converter. The Craftz Group, including its domestic and international subsidiaries, operates six factories - four in Tochigi, Niigata, Nagano and Saitama prefectures in Japan and two in Bangkok, Thailand. The company specializes in providing flexible packaging for a variety of consumer products, including food, confectionery, pet food, pharmaceuticals, and more, serving markets in both Japan and Thailand.
Flexible packaging is characterized by the use of materials such as polyethylene and polypropylene, which allow for versatile shaping. The film-based nature of this packaging offers advantages such as light weight, elasticity and ease of processing, making it suitable for a wide range of applications. In the context of ESG considerations, the shift to flexible packaging is a significant trend. Amid the global drive to reduce the use of plastics, flexible packaging is emerging as an important substitute for molded products and rigid packaging, helping to reduce their use. In addition, its superior gas barrier properties are essential for maintaining food quality and safety. Its role in reducing food loss and transportation costs adds to its importance, with continued strong demand expected in the future.

Company Name	Craftz Co., Ltd.
Investment Period	June 2022
Industry	Manufacturing and sales of flexible packaging for food, pharmaceuticals, and other consumer goods
Background	Business Succession
Website	https://www.craftz.co.jp

CONTENTS

1. SECTION 1 Selecting NSSK as a Trusted Partner for Business Succession
2. SECTION 2 Promoting Management Visualization
3. SECTION 3 Strengthening Organizational Structure
4. SECTION 4 Maintaining Profitability through Timely Price Transfer
5. SECTION 5 Stable Operation and Improved Productivity of New Factories
6. SECTION 6 ESG Initiatives
7. SECTION 7 Company Introduction

Selecting NSSK as a Trusted Partner for Business Succession

01

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Craftz engaged in in-depth discussions and exchanges with the founder over a period of more than a year leading up to the share transfer in June 2022. This process included a deep dive into the sentiments behind the business succession, as well as addressing the company’s challenges and envisioning its future. Through comprehensive analysis, providing information and presenting various proposals, NSSK was ultimately selected as the most reliable partner for the succession. Currently, Craftz maintains a positive relationship with the founding family, ensuring ongoing communication and exchange of insights and advice regarding management.

Promoting Management Visualization

02

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A key initiative in NSSK’s business improvement strategy is to improve management visibility. This has involved breaking down the vertically segmented organizational structure at each site and establishing monthly management meetings. These meetings focus on developing a system for tracking consolidated performance data and various KPIs, thus building an advanced management control system. In addition, the implementation of accounting reviews and the formulation of more detailed monthly budgets have provided a clearer and more timely understanding of the company’s performance dynamics.

Strengthening Organizational Structure

03

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Following NSSK’s involvement, a concerted effort was made to strengthen the organizational structure. This included promoting a new CEO from within to replace the previous owner, and hiring a CFO and accounting manager to strengthen the management team. In addition, new leadership roles have been established to oversee the manufacturing division, and strategic staff reallocations have been made, particularly at the Nagano site in anticipation of the new factory. Together, these initiatives have strengthened Craftz’s overall organizational capacity and fostered a work environment that maximizes employee potential.

Maintaining Profitability through Timely Price Transfer

04

Amid macroeconomic changes including international instability, interest rate and currency volatility, Craftz faced rising raw material costs. However, by actively negotiating with customers at each of its sales locations, the company was able to pass on the increased raw material costs to its product prices in a timely manner.

Stable Operation and Improved Productivity of New Factories

05

In both Japan and Thailand, the flexible packaging market is expected to continue its stable growth. In this context, Craftz plans to open new factories in Nagano and Thailand to meet the robust packaging demand. The focus will be on achieving stable operations while improving productivity and coordination between sites. The overall sales and EBITDA of the Craftz Group are expected to increase significantly as a result of this expansion.

ESG Initiatives

06

Craftz’s flexible packaging products, which mark a transition from rigid plastic packaging, contribute to reducing plastic usage, enhancing food safety and hygiene, and reducing food loss and transportation costs, in line with ESG-friendly practices. Following NSSK’s involvement, new ESG KPIs have been established to monitor and advance various ESG initiatives. In the area of CO2 emissions reduction, Craftz meticulously quantifies emissions at each site according to the guidelines set by the Ministry of the Environment, positioning it as a leader in environmentally-conscious practices among NSSK’s investments.

07

Company Introduction

INTRODUCTION
VIDEO