KUNIMINE INDUSTRIES CO., LTD.
5388・Standard Market・Glass & Ceramics Products
Business
Kunimine Industries, founded in 1943, is a bentonite specialist manufacturer that operates a vertically integrated business spanning the mining of raw bentonite ore through product manufacturing and sales across multiple domestic sites in Yamagata, Miyagi, Tochigi, Fukushima, Aichi, and other locations. The business consists of three segments: (1) the Bentonite Business (net sales of ¥11,842 million) covering foundry/molding materials, environmental/construction applications, and pet products; (2) the Clay Science Business (net sales of ¥1,788 million) covering high-performance clay products such as refined bentonite; and (3) the Agri Business (net sales of ¥3,444 million), centered on agrochemical processing. Main customers include industrial users such as foundry, construction, and agrochemical manufacturers, and the company also serves the pet products market. Through its Thai subsidiary, it also maintains sales channels in the ASEAN market.
Business Model
The company mines raw bentonite ore at its own mines (Kunimine, Kawasaki Mining, and Kanben Mining) and processes it into products for various applications at each plant, creating added value while containing raw material costs. In the Agri Business, contract processing for agrochemical manufacturers is the mainstay, and by leveraging formulation and granulation technologies, the company has achieved a high profit margin (segment profit margin of 24.1% in FY2026 (ending March 2026)). Profitability is being improved through continued price revisions and a shift toward higher value-added products.
Company Strengths
The company wholly owns three mining subsidiaries—Kunimine, Kawasaki Mining, and Kanben Mining—establishing an integrated system spanning from raw ore extraction to product manufacturing and sales. While utilizing imported raw ore, it also secures a stable supply of raw materials through active investment in domestic mining areas and development of new mining technologies. It maintains a high domestic market share in the foundry/molding materials field and possesses a resource base that competitors find difficult to replicate in a short period.
In FY2026 (ending March 2026), the Agri Business achieved net sales of ¥3,444 million (up 22.8% year on year), segment profit of ¥829 million (up 50.0% year on year), and a profit margin of 24.1%. This was driven by strong sales of insecticides/fungicides and new order acquisitions for herbicides. The order backlog expanded to ¥231,070 thousand, up 178.9% year on year, demonstrating the company's contract manufacturing competitiveness centered on formulation and granulation technologies.
Through joint research with Osaka University, the company commercialized Kuni-Grow+ (Research Reagent for 3D Cell Culture), and through joint research with Yamagata University, it is advancing the development of energy storage device components utilizing the electrochemical properties of clay. The company invested ¥235 million in research and development, primarily through the Kuroiso Research Institute, while also utilizing multiple grant programs. Its long-accumulated clay technology serves as the foundation for developing new applications.
ENVALITH's Perspective
Performance Trend
Revenue remained flat, moving from ¥15,257 million in FY2022 → ¥15,326 million in FY2023 → ¥15,675 million in FY2024 → ¥15,708 million in FY2025, but FY2026 (ending March 2026) showed a clear acceleration to ¥17,075 million, up +8.7% year on year. Operating profit fell to ¥829 million in FY2023, but then recovered as the effects of price revisions took hold and the Agri Business expanded, reaching ¥1,602 million in FY2026 (ending March 2026), the highest level in the past five fiscal periods. As an external factor, foreign exchange also shifted from a loss to a gain (¥-11 million → ¥+79 million), which pushed up ordinary profit (¥1,954 million, +23.5%). Operating cash flow improved substantially to ¥4,325 million (up +322.4% year on year), aided by a reduction in inventories (¥-1,881 million). Cash at period-end remained ample at ¥9,107 million, and financial soundness (equity ratio of 83.0%) continued to be maintained at a high level.
Growth Strategy
Building a highly profitable structure around four pillars: decarbonization, national resilience, new application development, and ASEAN expansion
The company is promoting the capture of domestic infrastructure development and geothermal power generation projects, with sales in the environmental construction field reaching ¥3,801 million in FY2026 (ending March 2026) (up 11.7% year on year), showing strong performance. Active sales activities are also underway for the radioactive waste treatment business. The strategy is to capture the tailwinds of decarbonization and national resilience through the company's own products and technological capabilities for environmental construction applications.
The company is promoting advancement of granulation technology and labor-saving/manpower reduction through IT utilization, achieving a 50.0% increase in segment profit and a profit margin of 24.1% in FY2026 (ending March 2026). New orders for herbicides were also secured. Expansion into new fields such as the seed coating business continues to be promoted, advancing diversification of revenue sources.
While Kunipia's cosmetics and daily necessities applications have seen increased demand both domestically and overseas, FY2026 (ending March 2026) saw decreased revenue and profit due to declining demand for industrial export applications and inventory valuation losses. Development of new applications through industry-academia-government collaboration for Kunishine, Kuni-Grow+ (Research Reagent for 3D Cell Culture), red tide countermeasure products, and other offerings continues. Recovery in industrial applications or further expansion of cosmetics applications will be necessary for profit improvement.
The company conducts trading of Bentonite for Foundry/Molding Materials for the ASEAN market through KUNIMINE (THAILAND) CO., LTD. (49% equity stake). Investment in a U.S. bentonite mining company through TRANS WORLD PROSPECT CORPORATION (71.43% equity stake) also continues. While overseas sales remain below 10% of the total, the company is promoting overseas sales expansion by leveraging its high domestic market share in the foundry/molding materials field.
The company is advancing organizational preparations for DX promotion and AI utilization, while continuing investment in mining area development and mining technology development. Expenditure on acquisition of property, plant and equipment in FY2026 (ending March 2026) increased significantly to ¥1,141 million (up 121.6% year on year), indicating that capital investment is gaining momentum in earnest. The aim is to strengthen medium- to long-term competitiveness through stable resource security and improved production efficiency.
Last updated: July 19, 2026