ETO Co., Ltd. plans to achieve sales of 18.4 billion yen this fiscal year. President Sakuma shared his thoughts on the company's initiatives.
The company's sales for the fiscal year ending in March 2024 reached 18.1 billion yen, reflecting both revenue and profit growth. Sales at overseas locations remained strong, particularly in China, where robust sales to local automotive parts manufacturers and the demand for automotive-related products in Thailand significantly contributed to the company's performance. Domestically, demand for construction machinery remained strong, and the automotive sector showed growth throughout the year, recovering from the semiconductor shortage. Although sales in the robotics sector declined, the company expects a recovery starting at the end of the year based on movements from partner manufacturers.
At the Kagoshima production facility, which has traditionally manufactured brass machined parts for specific manufacturers in the housing equipment sector, the company is expanding its material range to include iron and stainless steel. Utilizing its technical expertise, the facility has begun selling to a wider range of industries. With the expansion of external transactions, the facility is expected to obtain ISO 9001 certification shortly.
In Vietnam, where the company had previously operated a representative office, a local subsidiary was established at the end of last year, marking the start of sales operations. Moving forward, the company plans to enhance logistics functions by establishing warehouses and other facilities in Ho Chi Minh City, in addition to its office in Hanoi. The company aims to not only focus on sales but also strengthen its role as a procurement source by developing new suppliers.
In India, the company is leveraging three group locations in Chennai, Gurgaon, and Ahmedabad, which belong to its parent company, Kyokuto Boeki (Tokyo), while also expanding business from its base in Thailand.
In Taiwan, the company took over the equipment-related sales rights from Kyokuto Boeki in April of this year, adding a new base in Kaohsiung.
Regarding the overseas bases, President Sakuma commented, "In Vietnam, we are expanding our sales with a 'pioneering spirit,' without relying solely on existing users. In India, where there is no established practice of buying from trading companies, a full-scale entry may involve collaborating with manufacturers to establish production bases. India is an ideal country for young trading company employees to gain valuable experience, and I encourage them to build on this success."
This fiscal year may have started off slow, but President Sakuma emphasized "Sales" and "Quality Assurance System" as the key terms for further growth. The company aims to strengthen its business structure by expanding the sales of not only fastening components but also resin parts and other components.
