Mikuni Corporation Business Report FY2008

Business Highlights

Financial Overview (in millions of JPY)
FY2008 FY2007 Rate of Change (%) Factor
Sales 87,902 98,457 (10.7) -Sales of automotive components, including four-wheel vehicle and motor cycle components, declined drastically.

-Life and environment divisions, which focus on gas appliance controlling devices and automotive heaters, also saw a decline in sales mainly in the domestic gas appliance controller market.
Operating income (486) 3,052 - -Demand in Asia decreased in the latter half of the fiscal year, but the Company's income remained strong, overall.

-In Japan, the Company took urgent actions including labor cost reduction, expenditure cut and production relocations. But despite these efforts, its income declined due to sudden drop in demand.
Ordinary income (1,399) 2,193 -
Net income (2,483) (317) -
Automotive Components Division
Sales 61,077 68,742 (11.1) -Sales of four-wheel vehicle components, especially those for mini-vehicles, were strong.

-Sales of small and standard-sized car components were slow in North America and Japan, due to economic slowdown.
Operating income (460) 2,840 -

Recent Developments outside Japan
-The Company announced the dissolution of its partnership with Carburettors Ltd. on the management of Ucal Fuel Systems Ltd., a joint venture in India. The Company sold its 26% stake in Ucal, a supplier of automotive products in India, to Carburettors, for 182 million yen. As the Indian automotive industry continues to grow rapidly, both parties recognized the necessity to individually pursue growth strategies in India, responding to the fast-changing local market environment. The Company decided on the "exit " and set up a new, wholly-owned company to efficiently work on its own business development in India. (From a press release on Apr. 16, 2008)

-The Company has decided to establish its own subsidiary in India with a plant to manufacture throttle levers for automobiles and carburetors for motorcycles.

>>>See Investment for more details


R&D Expenditure (in millions of JPY)
FY2008 FY2007 FY2006
Overall 4,047 4,433 1,446
Automotive products 1,208 1,207 1,220

Automotive Products

-The Company is promoting R&D of control technology, actuator technology, sensing technology and material technology for computerized control fuel injection systems and engine components.

-The Company is also promoting development of urgently needed technologies such as: 1) technologies to reduce harmful effects on the environment; and 2) technologies dealing with the use of alternative fuels

R&D Activities
-Development of air intake module for four-wheel vehicles and development and mass production of a new resin intake manifold

-Development of computerized control fuel injection systems and components for ATVs

-Development of a new electronically-controlled throttle body for four-wheel vehicles

-Development of new CVTs

-Development of new vacuum pumps and new oil pumps

-Development and mass production of engine emission gas control valves

-Development of new coolant circulation pumps and coolant controlling valves

-Development of flow control valves and hydrogen sensors for fuel cell vehicles

-Development of new pressure sensors and new position sensors

Investment Activities

Investment Expenditure (in millions of JPY)
FY2008 FY2007 FY2006
Overall 6,171 5,089 5,255
Automotive products 5,207 3,907 3,932

-The automotive division focused its investment activities on building new plant facilities, developing new products, strengthening basic studies, launching production of new models, and streamlining operations.

Investment outside Japan
-The Company announced that it has decided to establish its own subsidiary in India with a plant to manufacture throttle levers for automobiles and carburetors for motorcycles. The new plant is slated to start operation in around April 2010 with an aim to generate sales of approximately 6.3 billion yen in fiscal 2013. The new company tentatively named Mikuni India Private Limited will be located in Rajasthan, India, capitalized at 1 billion yen with an initial investment of 1.9 billion yen that will take place between fiscal 2008 and 2012. The new plant of 4,000 square meters will be constructed at a site of 40,000 square meters. (From an article in the Nikkan Jidosha Shimbun on July 30, 2008)

New Equipment Installment (Automotive segment) (As of Mar. 2009)
Company/Plant Location Estimated amount
of investment
(in millions of JPY)
Period of the project
From To
Odawara Plant Kanagawa Pref., Japan 241 Apr. 2009 Mar. 2010
Morioka Plant Iwate Pref., Japan 354 Apr. 2009 Mar. 2010
Kikukawa Plant Shizuoka Pref., Japan 468 Apr. 2009 Mar. 2010
Sagara Plant Shizuoka Pref., Japan 132 Apr. 2009 Mar. 2010
Mikuni (Thailand) Co., Ltd. Ayutthaya, Thailand 449 Jan. 2009 Dec. 2009
Mikuni (Shanghai) Co., Ltd. Shanghai, China 354 Jan. 2009 Dec. 2009
PT. Mikuni Indonesia Jawa Barat, Indonesia 326 Jan. 2009 Dec. 2009
Mikuni Partec Co., Ltd. Shizuoka Pref., Japan 357 Apr. 2009 Mar. 2010