日本産業推進機構:NSSK

Case Studies

Takagi's "Second Chapter": Walking with a Trusted Partners
A "Company with People at the Core," Making Further Strides under Structured Management

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

Founded in 1961 and headquartered in Kitakyushu City, Fukuoka, Takagi Co., Ltd. Company Group operates water-related product businesses, including the manufacture and sale of faucets and water purifier cartridges. The Company Group operates in three main areas of business (water purifier business, water sprinkler business, and dies & molds business), and has factories in Japan and Vietnam, in addition to sales offices in Japan and Australia. In the water purifier business, the Company Group pioneered the faucet integrated water purifier with the launch of the “Mizu-Kobo” in 1999, which has one of the highest adoption rates in new condominiums in Japan, and has contributed to make Takagi Co., Ltd. one of the best-known companies in the water purifier industry. In the water sprinkler business, it also pioneered the market with the launch in 1980 of the “Nozzle Five”, a sprinkler nozzle with five different ways of spraying water. As a result, it has established the No.1 position in the domestic market by offering a wide range of customer-oriented products. Its dies and molds business has important functions mainly for in-house use, contributing to the speedy and flexible manufacturing of the Takagi Group’s products.
From an ESG perspective, the use of water purifying cartridges is expected to reduce negative impacts on the environment. The Takagi Group believes its products contribute to a sustainable society by reducing the use of disposable plastic containers and bottled water, thereby also decreasing the logistics associated with these products

Takagi Co., Ltd.
Company Name Takagi Co., Ltd.
Investment Period

June 2023

Industry

Manufacturer and distributor of faucets, water purifiers, and other water-related products

Background

Business Succession

Website

https://www.takagi.co.jp/

CONTENTS

  1. SECTION 1 From the Founding Period to "Takagi's Second Chapter
  2. SECTION 2 Selecting NSSK as a reliable business partner
  3. SECTION 3 Providing Measures and Solutions to Achieve Growth
  4. SECTION 4 Execution Phase of NVP Measures
  5. SECTION 5 Company Introduction

From the Founding Period to "Takagi's Second Chapter

01

Since its establishment in 1979 by Toshio Takagi, Takagi has grown to become one of the leading companies in Kitakyushu. However, as Mr. Takagi aged, the founding family faced the challenge of envisioning and realizing “Takagi’s Second Chapter” for sustainable growth. Despite the steady expansion of the water purifier and sprinkler businesses, a definitive strategy for the company’s long-term growth, especially for the next 10 to 20 years, remained unclear.
In addition to dealing with the aging of the existing plant, the company also faced the challenge of needing to invest significant capital to build a new plant to meet the growing demand for cartridges. In this situation, the president and founding family members felt significant emotional pressure due to the need to both transform the business and make a large capital investment, which led them to seek a new business partner.

Selecting NSSK as a reliable business partner

02

Faced with these challenges, the founding family turned to NSSK’s partners, long-time acquaintances through Seiwajyuku — a leadership academy founded by Kazuo Inamori, the late founder of Kyocera Corporation. This consultation led to the selection of NSSK as the most suitable and trustworthy partner for the next phase of growth. An important point that earned the trust of the founding families was NSSK’s management philosophy of “valuing employees and their families.” This principle is in line with Takagi’s philosophy of pursuing both material and spiritual happiness. The shared values and mutual understanding of these basic business principles led to the selection of NSSK as the partner for the capital and business alliance.

Providing Measures and Solutions to Achieve Growth

03

Since joining NSSK, we have been moving from an owner-centered management style to a more professional management system. Although we had a vision of what the company should be, there were challenges in clarifying goal setting, organizing measures to achieve those goals, prioritizing them, and scheduling them.
The first initiative we took was to develop the company’s medium-term management plan. We reviewed and redefined our mid- to long-term qualitative and quantitative goals and established an NVP list to guide us toward those goals. This approach centralized the management of strategies that were previously handled individually at each site, and by sharing them within the management team, we clarified the priorities and timelines of each management strategy and linked them to the company’s KPIs.
In addition, we addressed the challenge of a major capital investment for the construction of a new factory and office by resolving financing issues through negotiations with lenders at the time of the capital and business alliance. We also strengthened our internal governance structure by establishing investment criteria and decision-making standards that take into account cash flow and financial strength.
In addition, we have promoted management visibility. Since NSSK’s involvement, we have moved from individual profit and loss management to a consolidated system that includes our overseas subsidiaries. By organizing the contents and items of reporting for each base and division, we have established a system that allows important information to be reported to the management team in a more timely manner.

Execution Phase of NVP Measures

04

After setting the aforementioned goals and providing NVP measures and solutions, we are now moving into the implementation phase of value-added measures.
Among several key initiatives, the first is the optimization of selling prices for water purification cartridges. Previously, pricing strategies were somewhat intuitive, but we have reevaluated these prices in light of the functionality and value of Takagi’s products, based on an analysis of past cost increases, competitive pricing positions, and trends in competitors’ price increases. This re-evaluation has led to an improvement in profitability. Secondly, in addition to the construction of the new plant, we have further improved production capacity and productivity by reviewing production lines and processes. By combining the expertise of our field staff with expert advice in plant operations analysis, we expect to see an increase in productivity.
Third is the establishment of ESG KPIs and the development of an internal promotion system. Takagi has always been active in diversity and inclusion initiatives and community contribution activities, but we have now set more explicit targets. Specifically, Takagi has set clear goals for reducing GHG emissions, increasing the ratio of female managers and employees, eliminating the number of workplace accidents, and promoting VMV (Values, Mission, and Values). We believe that this has enabled us to create a framework that supports the company’s sustainable growth.
Other future initiatives include reviewing our business structure with rental management companies, reorganizing our new attack list, and strengthening top sales through alternative channels in order to improve the introduction rate in the rental and renovation markets other than newly built condominiums, where Takagi has an advantage.
Takagi will continue to take on the challenge of providing better products and services to our customers under our management philosophy of “contributing to the development of society by providing comfort and enrichment to people’s lives”. As a “company with people at its core,” Takagi will continue to strive for further development and the realization of dreams based on the overflowing enthusiasm and excellent ability of each and every employee, who are the driving force behind the company’s development, as well as a positive mindset united by a spirit of camaraderie.

05

Company Introduction

INTRODUCTION
VIDEO

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