Continuing to create new value for society based on the "The Natural Power of Plants"
For 112 years since its founding, the Nisshin OilliO Group has enriched people's lives by providing oils that were derived by maximizing the "The Natural Power of Plants." Oils and fats are one of the three main nutrients essential for the human body. They are crucial to daily life, covering "good flavor, health and beauty". The mission of the Nisshin OilliO Group is to contribute to society by providing vegetable oils. This will not change today or anytime in the future.
Meanwhile, the role of oils and fats has changed with the times. In the past few years, new focus has been placed on the value of oils and fats owing to a rise in health consciousness. The Nisshin OilliO Group has been driving the market, disseminating information related to the use and functions of oils and fats, including "oil for topping"*1 and MCT (Medium-Chain Triglyceride)*2. Accordingly, we are addressing the needs of society by providing added-value related to health.
In addition, reflecting the expansion of the market, we are globally deploying, as BtoB products, high-function specialty fats from the Processed Oil and Fat Business, and high-quality raw materials for cosmetics in the Fine Chemical Business. The role and mission the Nisshin OilliO Group are carrying out are extending to Asia and other countries around the world.
When I visit a group production sites, I share my belief with the employees that the role of a production plant is to be equipped with the power to provide support, instill change and to create. However, this does not only apply to the production department. As a manufacturer, I believe this applies to all the activities of the Nisshin OilliO Group. We utilize our technology and development capabilities to extract the potential of plant-based resources. We provide solutions based on the "The Natural Power of Plants" to deliver new products and services that address both the existing and potential needs of our customers.
*1 Oil for topping
Olive, sesame seed, flaxseed and other oils that can be poured directly from the bottle onto various dishes and eaten raw.
*2 MCT (Medium-Chain Triglyceride)
The Nisshin OilliO Group has been undertaking research and development for many years into a 100% pure medium-chain triglyceride oil. In recent years, recognition of MCT oil is improving. We plan to continue our research into the possibilities of MCT, not only from a nutritional standpoint, but also for improving motor capabilities and energizing brain functions. In tandem with this, we aim to appropriately disseminate information.
In Japan, the declining population due to a low-birth rate and aging is a serious social issue.
Furthermore, looking at the rest of the world, there are numerous issues that need to be solved. This includes rising food demand due to a growing world population, environmental issues such as plastic ocean debris, and sustainable procurement related to labor and the environment. As we conduct our business operations on a global scale, it is vital that the Nisshin OilliO Group focus on these issues and think about its business strategies and investment plans from a macroeconomic viewpoint.
At the same time, I believe it is just as important to view our detailed business activities from a microeconomic perspective. For instance, from a macroeconomic standpoint, looking at the economy in Japan, there is concern that the market will contract in tandem with the decrease in the population. Recently, in the edible oil market, we are seeing an expansion trend in "oil for topping" and products for ready-to-eat food manufacturers and restaurants. In light of this, we do not put too much emphasis on macroeconomics. Instead we place importance on current changes in the environment based on our daily negotiations and communications with our customers. By identifying needs down to the finest details and proposing new value, we are able to turn what appears to be a difficult situation into an opportunity.
Given these conditions and trends, going forward I believe it is necessary that we analyze segment and individual data and environments, rather than taking an overall outlook or average. For more than 20 years, the Foods & Lifestyle Research Group*3 of Nisshin OilliO has conducted surveys and analysis of dietary lifestyles. In addition, in the field of BtoB we have implemented marketing model that implements the joint development of demand via affiliations with our users to come up with individual optimal solution. In this manner, we will bring both the macro and micro economy into perspective while boldly implementing business activities.
*3 Foods & Lifestyle Research Group
Investigate, research and disseminate information on society overall, including changes in the social climate, mainly dietary lifestyle, and changes in consumer values, and lifestyle habit trends triggered by this.
Recently, SDGs has become widely known. Interest is rising in initiatives directed at achieving a sustainable society. In addition, ESG has also become an extremely important keyword in corporate management. The Nisshin OilliO Group is a signatory of the UN Global Compact*4 and endorses SDGs. In addition, in the medium-term management plan we are currently implementing, one of our goals is to implement ESG management. We also have established a Palm Oil Sourcing Policy. The palm oil business plays a leading role in the global strategy for our business activities. The policy takes into account human rights and the environment along the entire supply chain.
This concept of co-existence and co-prosperity with society has been important since our founding as the Nisshin OilliO Group is deeply involved in people’s lives. Another concept we have being implementing through our business activities thus far is CSV (creating shared value). However, we recognize that there are still some issues that need to be dealt with when it comes to disseminating this externally. Going forward, we aim to present our sentiments as firm commitments and place emphasis on how to fulfill these responsibilities. As we achieve the goals we have committed to thus far while also aiming to make improvements, we will set out to pledge new commitments. I believe that these ongoing initiatives will contribute to the development of a better society and better growth for the Nisshin OilliO Group.
*4 UN Global Compact
Nisshin OilliO became a signatory in 2011. In fiscal 2018, instilled the principles of the UN Global Compact in employees, mainly through an ESG study group and during new employee training.
We embarked on OilliO Value Up 2020, the group’s medium-term management plan, at the start of fiscal 2017. During the first two years of this plan, we are steadily achieving the numerical targets in the domestic household-use domain, commercial-use and food processing domains, and due to an expansion in markets around the world, in the Processed Oil and Fat Business and Fine Chemical Business. Meanwhile, there are measures that are still underway, including the strengthening of the global supply chain in the Processed Oil and Fat Business*5 and the expansion of the Health Science Business. We aim to accelerate our undertakings to achieve our management goals by fiscal 2020, which is our deadline.
I believe that employees of Nisshin OilliO Group feel confident about the possibility of new growth further out and this is motivating them to tackle their jobs. As a group as a whole, we aim for further growth while continuing to develop an environment, including the promotion of the advancement of women in the workplace*6, to encourage employees to work energetically. *5 Strengthen the global supply chain
In fiscal 2018, we acquired Intercontinental Specialty Fats (Italy) S.r.l., a refinery in Italy. In addition, we completed a commercial-use chocolate plant, which was constructed by PT. Indoagri Daitocacao, which is a joint venture with Daito Cacao Co., Ltd. and the Salim Group of Indonesia. Production is set to being in fiscal 2019.
*6 Promoting the advancement of women in the workplace
We have been implementing women’s career training since fiscal 2017. The goal is to have female employees take a positive outlook on their careers, mainly through a new recognition of their own strengths and by sharing their career vision with their superiors. We anticipate this will contribute to growth moving forward.
The core commitment of the Nisshin OilliO Group, which is our pledge to all stakeholders, is to remain a market pioneer and continue to create products and services that consumers want. Discovering needs from the perspective of the consumer is an essential first step to producing new value. However, there will be no innovation if we just stop there. Of further importance is the method for materializing these needs and for delivering products and services to society. In fiscal 2019, we plan to tackle organizational development to fulfill this mission, which includes expansion of the field of production technology.
Two years have passed since we launched the current medium-term management plan. We are now on the threshold of creating a new growth scenario to sustain the growth of the Nisshin OilliO Group moving forward. In our engagement with society, our focus is on what type of value we can create. From this perspective, we plan to develop our value creation story and aim to become a company with a presence in the global arena.
President and Representative Director
Corporate Report 2019 (Japanese Version) (10,709 kb)