The Wacoal Group incorporates materials production and supply functions, for which it had previously relied on outside companies, into its own supply chain

Wacoal Holdings Corp. provides advanced products to markets worldwide, and continues to be a pioneer in the field of innerwear culture. With its corporate mission stating, “We will contribute to society by helping women to express their beauty,” the Wacoal Group comprises 58 subsidiaries and nine affiliated companies, developing its business as a unified whole. As a manufacturer, the Group has continued to pursue quality in its products, and this quality is the very identity of the Wacoal Group. It is no exaggeration to say that the trust customers have in the Wacoal brand today is sustained by the high quality of the Group’s products.

The global strategy of the Wacoal Group is of particular note. Its overseas business, which focuses on the key markets of the United States, Europe, and China, achieved sales of 51.869 billion yen (an increase of 7.8 percent year-on-year) for the year ending March 2016.

Aiming for further growth, the Wacoal Group has now set its sights on the Asian market as a whole, and India and the ASEAN region in particular. In order to dominate this market, it is essential that the Group establish a supply system for more price-competitive products. Takuya Miura, head of International Headquarters and an executive officer at Wacoal Corp., a production and sales subsidiary of Wacoal Holdings, noted: “We have previously relied on outside companies for the production and supply functions of our materials. By incorporating these functions into the Wacoal Group supply chain, we hope both to achieve stable production of final products and to reduce costs.”

In order to carry out this plan, the Group established two new companies in Thailand: A Tech Textile Co., Ltd. (A Tech) and G Tech Material Co., Ltd. (G Tech).

Wacoal entered into a basic agreement with Thai Wacoal and its longtime partner Saha Pathana Inter-Holding Public Company Ltd. (SPI) to jointly establish and operate two materials production companies. Consequently, A Tech acquired the materials business in isolation from Textile Prestige Public Company Ltd. (TPC), an SPI subsidiary; likewise, G Tech inherited Grand Star Division, the materials business division of Erawan Textile Co., Ltd. (ETC), another SPI subsidiary.

Major Issues

  • M&A carve-out project
  • Business at the new companies set to commence in less than a year
  • Negotiations and close relationships with local Thai corporations are a must

User Profile

Client Outline
  • Company name:
    Wacoal Corp.
  • Location:
    29 Nakajima-cho, Kisshoin, Minami-ku, Kyoto, 601-8530 Japan
  • Established:
    October 1, 2005
    *On October 1, 2005, the former Wacoal Corp. became a holding company and was renamed Wacoal Holdings Corp. The newly established Wacoal Corp. became a fully owned subsidiary of Wacoal Holdings.
  • Total investment:
    Common Stock::5 billion yen
  • Business activities:
    Manufacturing and wholesaling of innerwear (primarily women’s foundation garments, lingerie, nightwear and little innerwear) outerwear, sportswear, other textiles and related products, as well as direct consumer sales of some items.
  • Capital:
    85.4 billion yen
Project Outline
  • Outline:
    The project involves IT Due Diligence and new company systems integration/transformation following M&A resulting from divestiture.
  • Software: