[Company analysis] Nissan Chemical Industries, Ltd. (日産化学工業)

「Nissan Chemical Industries, Ltd. (日産化学工業)」was established in April 1887, is Japan's first chemical fertilizer manufacturer. In addition to chemical fertilizer products, they are also developing a pesticide-related "Roundup" series. In the past, this company was a member of 「Nissan Group(日産コンツェルン)」, but now there is no special connection since the Zaibatsu dissolution was taken place. The number of consolidated employees is about 2,583.

 

1. Company Profile

2. Summary and Features

3. Major Business

4. Financial Information

 

 

 

1. Company Profile

 

※Unit is JPY million, as of 2019

Company name	Nissan Chemical Industries, Ltd.
Company name (Japanese)	日産化学工業
Date of establishment	February 16, 1918
Headquarters location	〒103-6119 東京都中央区日本橋二丁目5番1号
Capital	18,942
Consolidated sales	204,896
Consolidated operating profit	37,091
Consolidated total assets	246,990
Consolidated capital	182,074
Capital adequacy ratio	73.7%
Consolidated number of employees	2,583

 

 

 

2. Summary and Features

 
「Nissan Chemical Industries」was established in 1887 under the name of「Tokyo Jinzo Hiryo(東京人造肥料)」 and was incorporated into the company in 1893. In 1910, its name was changed to「Dainippon Jinzo Hiryo(大日本人造肥料株式会社)」, and in 1937 it was changed to「Nissan Chemical Industries(日産化学工業株式会社)」. After that, they were included by「Nippon Mining(日本鉱業)」as a chemical division. But later, according to the dissolution of the Zaibatsu in 1945, they became independent and changed the company name back to「Nissan Chemical Industries」.

One of the special features of「Nissan Chemical Industries」, which is currently developing pesticide-related and pharmaceutical products, is its high operating margin. The company has a stable and excellent business result with operating margin of over 10% for 14 consecutive years. The driving force behind this is the research and development capabilities of Nissan Chemical Industries. Chemical companies generally tend to spend more on R & D, but Nissan Chemical is top class in R & D expenditure in the Japanese chemical industry.

In the functional materials field, they have been involved in LCD(Liquid Crystal Displays) since 1950 and in  semiconductors since the 1980s, and aggressively entering the global market since 1990. All of the above challenges have achieved the world's highest level of success, and so the oversea sales are accounting for 80% of total sales of 「Nissan Chemical Industries」.

In the field of life science, agrochemicals is the main product of「Nissan Chemical Industries」and it have long been highly evaluated in the global market and are still registered and sold in more than 50 countries worldwide. From now on, the world's population will continue to increase, and the role of Nissan Chemical Industry is expected to grow even more as the agricultural sector is also guaranteed to develop.

In 1982, this company entered the pharmaceutical field, and are working on groundbreaking new drug research and development based on precision organic synthesis technology. In particular, "Fluralaner(フルララネル)", an animal anti-parasite drug has been highly regarded as being sold in 85 countries worldwide in just four years since its first release in 2014. Demand for "Fluralaner" is expected to increase in the future.

 

 

 

3. Major Business

 

■ Chemicals business
Basic chemicals, fine chemicals, in-house developed products

■ Functional Materials business
Display materials, semiconductor materials, inorganic colloids, proprietary products

■ Agricultural Chemicals business
Pesticides, green space management drugs, veterinary drugs

■ Pharmaceutical business
In-house drug discovery, Finetech

 

 

 

4. Financial information

 

※Unit is JPY million

		2016	2017	2018
Consolidated sales		180,289	193,389	204,896
Consolidated operating profit		31,438	34,988	37,091
Consolidated total assets		231,748	249,043	246,990
Consolidated net assets		163,707	176,364	182,074
Breakdown of sales	Chemicals business	25,723	25,546	25,991
	Functional Materials business	46,403	51,973	55,655
	Agricultural Chemicals business	47,791	54,262	57,513
	Pharmaceutical business	7,966	7,493	6,968
	Wholesales business	42,281	44,474	48,562
	Others	10,108	9,638	10,188