ENVALITH
東海染工株式会社 logo

Tokai Senko K.K.

3577Standard MarketTextiles & Apparels

東海染工株式会社 logo
Tokai Senko K.K.3577

Dyeing & Processing Business

Core business handling dyeing/processing of natural and synthetic fibers and textile sales

PeriodCurrentPreviousChange
Net Sales (to external customers)¥8,850 million (segment total ¥8,907 million)¥9,759 million (segment total ¥9,843 million)
Operating Income (Segment Profit or Loss)¥(115) million (operating loss)¥137 million (operating income)
Segment Assets¥6,914 million¥7,500 million
Depreciation and Amortization¥319 million¥340 million
Increase in Property, Plant and Equipment and Intangible Assets¥206 million¥112 million

Business Details

Consists of two segments: fabric and knit processing of natural and synthetic fibers (Processing Fee Segment) and apparel-related textile sales (Textile Sales Segment). Domestically, Tokai Senko itself and its subsidiaries are engaged, while overseas, Indonesian and Thai subsidiaries operate. With uniform, casual, and apparel customers as the main clients, this is the largest segment, accounting for approximately 64% of the Group's consolidated net sales. In FY2026 (ending March 2026), the Dyeing & Processing Business as a whole fell into an operating loss.

Recent Overview

Fell into an operating loss due to uniform inventory adjustment and weak orders in Indonesia

In FY2026 (ending March 2026), net sales of the Dyeing & Processing Business were ¥8,907 million (down 9.5% year-on-year, a decrease of ¥936 million), with an operating loss of ¥114 million (compared to operating income of ¥136 million in the prior year). Domestically, excess distribution inventory in the uniform sector significantly pressured orders. The Indonesian subsidiary worked on introducing new solid-dyeing products and developing new customers, but struggled with domestic-bound orders, leading to a decrease in processing volume. On the other hand, the Textile Sales Segment secured increased sales through steady exports of printed goods overseas.

Key Products

service
Processing Fee Segment (Dyeing & Processing Services)

Domestically, price increases and revisions of transaction terms were advanced, but orders declined significantly due to excess inventory in the uniform sector. Overseas (Indonesian subsidiary), efforts were focused on introducing new solid-dyeing products and developing new customers, but the company struggled with domestic-bound orders, leading to a decrease in processing volume. In FY2026 (ending March 2026), net sales of the Processing Fee Segment were ¥6,984 million (down 13.0% year-on-year, a decrease of ¥1,041 million).

product
Textile Sales Segment

Domestic sales to the apparel sector continued to be sluggish, but overseas, fabric exports such as printed goods performed steadily, resulting in increased sales. In FY2026 (ending March 2026), net sales of the Textile Sales Segment were ¥1,922 million (up 5.8% year-on-year, an increase of ¥105 million).

Growth Drivers

  • Recovery of orders through the introduction of new solid-dyeing products and development of new customers at the Indonesian subsidiary
  • Aggressive acquisition of transferred orders domestically due to closures and restructuring of competitors
  • Business expansion through response to new materials and technologies such as 100% polyester continuous dyeing
  • Improvement of profitability through continuous revision of processing fees and transaction terms
  • Steady expansion of textile exports (printed goods, etc.) to overseas markets
  • Expansion of export orders through strengthening relationships with existing customers and developing new customers

Risks

  • Continued sluggish processing volume due to excess distribution inventory in the uniform and school uniform sectors
  • Continued rise in manufacturing costs such as dyes, chemicals, and energy, and delays in cost pass-through
  • Risk of sluggish local orders due to conditions in Indonesia (demonstrations, etc.)
  • Market stagnation due to inflow of cheap products from China and the shrinkage/closure of competitors
  • Structural demand contraction due to population decline and aging in the domestic textile industry
  • Risk of increased costs at overseas subsidiaries such as Indonesia due to exchange rate fluctuations (yen depreciation)

Last updated: June 25, 2026