Kyowa Leather Cloth India Investment Supports New Production Base

Kyowa Leather Cloth Expands Synthetic Leather Production in India

Kyowa Leather Cloth India investment will support the establishment of a new local production base after Kyowa Leather Cloth Co., Ltd. announced on August 31 that it will increase the capital of KYOWA INDIA PRIVATE LIMITED (KI), a planned consolidated subsidiary in India. KI will manufacture and sell synthetic leather products. Kyowa Leather Cloth resolved to establish the subsidiary on July 31, with its establishment scheduled for September 2026 and the capital increase planned for October. The move is intended to strengthen local production and supply capabilities as the company expands its presence in the Indian market.

Capital Increase to Fund Factory and Equipment

The capital increase will amount to approximately INR 1.705 billion (JPY 2.9 billion), raising KI’s capital to approximately INR 1.764 billion (JPY 3.0 billion). Kyowa Leather Cloth will hold a 99.99% ownership stake in the Indian subsidiary. The funds will be directed toward acquiring land, constructing a factory, and purchasing equipment for a new production base. Through these investments, Kyowa Leather Cloth Co Ltd plans to establish manufacturing and supply capabilities within India, reducing reliance on exports from Japan and creating a dedicated local operating platform.

India Identified as Key Growth Initiative

Kyowa Leather Cloth identified the launch of a new business in India as one of its key initiatives in the medium-term management plan announced in May 2024. The company began exporting synthetic leather from Japan to India in 2024 while evaluating the establishment of a local production plant in 2027. The latest investment decision advances that strategy through the creation of KYOWA INDIA PRIVATE LIMITED, providing a dedicated subsidiary for manufacturing and sales activities in the country. The planned facility is expected to support the company’s longer-term expansion of its Indian business.

2030 Sales and Profit Targets for Indian Operations

Kyowa Leather Cloth is targeting sales of JPY 2.8 billion and operating profit of JPY 600 million from its Indian operations in fiscal 2030. The planned production base is therefore positioned as a longer-term business expansion initiative rather than only a capacity investment. By combining local manufacturing with sales operations, the company intends to build supply capabilities closer to Indian customers and support future business growth. The capital increase, factory construction, and equipment purchases represent the key steps toward establishing the operating foundation required to pursue those fiscal 2030 targets.

Frequently Asked Questions

What is Kyowa Leather Cloth planning in India?
Kyowa Leather Cloth is establishing a subsidiary and investing in a new synthetic leather production base in India to strengthen local manufacturing and supply capabilities. KYOWA INDIA PRIVATE LIMITED is scheduled to be established in September 2026, followed by a capital increase in October. The investment will fund land acquisition, factory construction, and equipment purchases. Kyowa Leather Cloth will own 99.99% of the subsidiary. The company began exporting synthetic leather from Japan to India in 2024 and is now advancing its longer-term localization strategy, with fiscal 2030 targets of JPY 2.8 billion in sales and JPY 600 million in operating profit from its Indian operations.