Karen McIntyre, editor07.08.21
Daio Paper has launched a fourth medium-term business plan with the slogan, Gear UP, The Next Growth Stage to a New Future. The basic policies of the plan are establishing a strong a resilient business portfolio; improve financial strength and respond to climate change by achieving carbon neutral status by 2050.
Daio will aim to build an even better competitive advantage in the pulp and paper business by capitalizing on the results of strategic investment and structural reforms. Meanwhile, in its Household and Personal Care (HPC) business, Daio is planning an aggressive overseas expansion of its existing hygiene businesses.
By 2023, Daio expects that its HPC sales will, for the first time, exceed sales of the P&P category thanks to product development attracting new customers, enhancing supply capacity and advancing multi-category expandsion by leveraging Ellerair’s brand strength. Additionally, Daio will accelerate its overseas business. Measures here include entry into China’s feminine hygiene market and increasing sales of household paper and adult diapers and enhancing its product line-up, particularly in the baby diaper market, in Brazil.
Daio has also committed to entering new markets by developing its multi-category business expansion model in Japan into other markets and accelerating its growth through mergers and acquisitions.
In June 2020, Daio acquired companies in Turkey and Brazil. Özen Kişisel Bakım Ürünleri Üretim A.Ş. (Özen), now known as Elleiar International, included a plant near Istanbul, Turkey. Santher - Fábrica de Papel Santa Therezinha S.A., is a manufacturer of personal care products in Brazil, and now operates as an indirectly owned subsidiary of Daio. As part of its overseas expansion plan, Daio will use these bases to extend their reach into neighboring countries in the Middle East and Central America. The company also plans to expand its Chinese business by embarking on a full-scale entry into China’s third-tier cities.
These efforts are being made with the goal of increasing sales in Central and South America from ¥22.6 billion to ¥37 billion and its MENA, its Russian sales from ¥1.9 billion to 8¥ billion, its East Asian sales from ¥31.7 billion to 6¥2 billion and Southeast Asia from ¥6.4 billion to ¥14 billion by 2023.
Meanwhile, in China Daio is expanding distribution of its super premium diapers into third-tier cities, which account for 80% of the market. Super premium diapers have consistently increased their share of Daio’s diaper sales, growing from 1% of sales to 26% since 2014.
Daio completed work on a second Chinese factory in September 2020 and added wet wipes machines in March 2021. Next year, the company plans to add a feminine care production line and start localized production in China.
Daio will aim to build an even better competitive advantage in the pulp and paper business by capitalizing on the results of strategic investment and structural reforms. Meanwhile, in its Household and Personal Care (HPC) business, Daio is planning an aggressive overseas expansion of its existing hygiene businesses.
By 2023, Daio expects that its HPC sales will, for the first time, exceed sales of the P&P category thanks to product development attracting new customers, enhancing supply capacity and advancing multi-category expandsion by leveraging Ellerair’s brand strength. Additionally, Daio will accelerate its overseas business. Measures here include entry into China’s feminine hygiene market and increasing sales of household paper and adult diapers and enhancing its product line-up, particularly in the baby diaper market, in Brazil.
Daio has also committed to entering new markets by developing its multi-category business expansion model in Japan into other markets and accelerating its growth through mergers and acquisitions.
In June 2020, Daio acquired companies in Turkey and Brazil. Özen Kişisel Bakım Ürünleri Üretim A.Ş. (Özen), now known as Elleiar International, included a plant near Istanbul, Turkey. Santher - Fábrica de Papel Santa Therezinha S.A., is a manufacturer of personal care products in Brazil, and now operates as an indirectly owned subsidiary of Daio. As part of its overseas expansion plan, Daio will use these bases to extend their reach into neighboring countries in the Middle East and Central America. The company also plans to expand its Chinese business by embarking on a full-scale entry into China’s third-tier cities.
These efforts are being made with the goal of increasing sales in Central and South America from ¥22.6 billion to ¥37 billion and its MENA, its Russian sales from ¥1.9 billion to 8¥ billion, its East Asian sales from ¥31.7 billion to 6¥2 billion and Southeast Asia from ¥6.4 billion to ¥14 billion by 2023.
Meanwhile, in China Daio is expanding distribution of its super premium diapers into third-tier cities, which account for 80% of the market. Super premium diapers have consistently increased their share of Daio’s diaper sales, growing from 1% of sales to 26% since 2014.
Daio completed work on a second Chinese factory in September 2020 and added wet wipes machines in March 2021. Next year, the company plans to add a feminine care production line and start localized production in China.
