KVK CORPORATION
6484・Standard Market・Machinery
Japan
The core segment of the KVK Group, responsible for the manufacturing and sale of faucets, water supply & drainage fittings, and related products for the domestic market.
| Period | Current | Previous | Change |
|---|---|---|---|
| Net Sales (Japan Segment, External Customers) | ¥30,414 million | ¥29,196 million | ↑ |
| Segment Profit | ¥3,056 million | ¥2,989 million | ↑ |
| Segment Assets | ¥28,617 million | ¥29,961 million | ↓ |
| Net Sales to Major Customer (Takara Standard) | ¥3,598 million | ¥3,609 million | ↓ |
| Property, Plant and Equipment (Japan) | ¥8,766 million | ¥9,234 million | ↓ |
Business Details
This segment involves the manufacturing, processing, procurement, and sale of faucets, Water Supply & Drainage Fittings, Joints & Piping Components in Japan by KVK Corporation. As the core business accounting for approximately 98% of the Group's external customer sales, it centers on Single-Lever Faucets and Thermostatic Faucets as mainstay products. Major customers include Takara Standard Co., Ltd., and the segment achieves nationwide distribution through plumbing and equipment sales channels. The segment operates a structure in which parts are supplied from subsidiaries in China and the Philippines, while final products are manufactured and sold domestically.
Recent Overview
Despite headwinds in the housing market, focused order-taking efforts led to record-high net sales.
In FY2026 (ending March 2026), the Japan segment's external customer net sales reached ¥30,414 million (up approximately 4.2% year on year), marking a record high. Amid a challenging market environment with continued declines in new housing starts, the company focused on order-taking activities with customers, resulting in increased orders for Single-Lever Faucets and Thermostatic Faucets. Quality improvement also progressed, including standardizing water-repellent film coating on the Multi Reform Faucet Series and reducing warranty-period repair cases by approximately 13% and repair costs by approximately 17% year on year. The company also strengthened relationships with sales agents and distributors through regional conventions (Kansai, Tohoku, and Kanto) of the nationwide KVK Association.
Key Products
Growth Drivers
- Increased orders for Single-Lever and Thermostatic Faucets through proactive order-taking activities with customers
- Enhanced added value and competitiveness through standardization of water-repellent film coating on the Multi Reform Faucet Series
- Steady housing renovation demand and strengthened collaboration with sales agents and distributors through the nationwide KVK Association
- Improved productivity and cost competitiveness through KPS (KVK Production System) activities
- Reduction in warranty-period repair cases and repair costs through quality improvement activities (enhancing customer satisfaction and reducing warranty costs)
- Appropriate supply chain management, including compliance with the Act on Promotion of Subcontracting Small and Medium-sized Enterprises
Risks
- Continued decline in new housing starts (long-term market contraction due to declining birthrate, aging population, and fewer households)
- Weak housing purchase sentiment due to rising mortgage rates and inflation
- Increased manufacturing costs due to sustained high prices for key raw materials (such as copper alloys) and rising energy prices
- Risk of crude oil price spikes and shortages of petroleum-derived raw materials due to U.S. trade policy and Middle East tensions
- Customer concentration risk from sales concentration with Takara Standard Co., Ltd. (approximately 11.8% of Japan segment net sales)
- Risk of increased procurement costs due to sharp foreign exchange fluctuations
Last updated: June 23, 2026