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
Company Name | Takagi Co., Ltd. |
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Investment Period | June 2023 |
Industry | Manufacturer and distributor of faucets, water purifiers, and other water-related products |
Background | Business Succession |
Website |
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CONTENTS
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.
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