AMITA Group's Medium- and Long-Term Business Strategy

How we navigate fast-evolving operating environments

Over the past half-century plus, the global supply chain has been the primary driver for the Japanese manufacturing sector that relies on steady and massive streams of inexpensive imported oil, raw materials, and food.

While this industrial model has brought unparalleled economic prosperity to Japan, its inherent mass-production, mass-consumption, and mass-disposal nature has had an adverse impact on society, such as environmental pollution, resource depletion, and a strain on relationships among people, just to name a few. Today, increasingly serious climate change and resource depletion directly and indirectly cause the worsening of infectious diseases and the outbreak of wars and conflicts around the globe. With the global supply chain partially disrupted, combined with soaring energy and materials prices, as well as trade restrictions imposed by some countries, Japanese businesses face enormous procurement risks.

Moreover, Japanese society is plagued by an aging and shrinking population. It is obvious that the traditional industrial model can no longer sustain the growth of economy and society in Japan under triple pressures, namely soaring energy and materials prices, rising labor costs, and the shrinking market.

As the traditional model has lost its relevance, how can we sustain business growth? The AMITA Group's answer to this proposition is to establish an ecosystem society in which natural and relational capital will be enhanced in a virtuous circle as economy and society grow. An ecosystem society is a circular society that produces no waste, drawing inspiration from natural ecosystems that maintain an optimal state as a whole while constantly and dynamically changing.


The key to establishing an ecosystem society is circularity. To achieve maximum return on minimum investment, we must initiate the following three processes:
1.Predict demand to better control production and cut down on waste
2.Replace a conventional business model of selling products per se with a servicizing model of selling products' functionality
3. Pursue a circular supply chain that facilitates local procurement of materials

These processes enable businesses to make a switch from a traditional produce-sell-and-consume model to a more sustainable, ESG-embedded model that makes a circular use of functionality of products made from locally procured circular materials based on demand prediction. Consumer products companies that operate on this sustainable business model will have a greater chance to earn public trust and respect and bolster their profit margins—even in a shrinking market—by cutting back on ad budgets and personnel costs, as well as by better controlling the cost of sales.

AMITA's medium- and long-term strategy

The AMITA Group's long-term business strategy is focused on assisting businesses in transitioning to a sustainable business model and achieving greater profitability in a challenging market environment. More specifically, we intend to establish the MEGURU PLATFORM, which consists of MEGURU STATION®, a resource-collection site that promotes mutually supportive engagement among community residents, and MEGURU FACTORY, a facility that converts collected traceable resources into circular materials.

Our goal is to have MEGURU STATION® in every school district around the country, which serves as a community spot where residents can drop by to dispose of household waste for recycling and mingle with others. The station also compiles information about residents' behavioral patterns and the type and volume of collected waste.

MEGURU FACTORY receives collected waste from MEGURU STATION®, recycles it into value-added circular materials, and ships them to manufacturers for commercial use.

The AMITA Group's role is to assist businesses in procuring circular materials produced locally by MEGURU FACTORY, as well as to predict community-specific consumer demand for any given product based on big data on residents' use and disposal of materials, and to share findings with local businesses and municipalities.


To make MEGURU PLATFORM work, a community must have a sufficient number of MEGURU STATION® locations in operation and have a materials circulation scheme in place. As a viable solution to this challenge, AMITA offers a community development scheme, named Co-Creation City (CCC) Initiative, for consideration by municipalities. It is intended to address the four major community challenges—population drain, aging and shrinking population, rising costs of social security programs, and declining employment opportunities—by facilitating greater engagement among residents and other stakeholders, as well as greater circulation of materials. Under this initiative, MEGURU STATION® will become a part of implementing a community development measure initiated by a municipality, rather than offering an ad hoc solution to specific community issues concerning the environment and residents' welfare. This approach will make it easy to expand the network of MEGURU STATION® locations geographically.


Establishing the MEGURU PLATFORM is a cross-industry, collaborative effort. AMITA teams with NTT Communications in compiling and analyzing information gathered through MEGURU STATION®, works with J-CEP¹ and CLOMA² to recycle collected waste into usable materials and value-added products, and partners with Sumitomo Mitsui Trust Bank and the BELL Group to add more value to MEGURU STATION®.

1.Japan Circular Economy Partnership, a cross-industry corporate alliance that drives a circular economy
2.Japan Clean Ocean Material Alliance, promoting cross-industry collaboration in addressing marine plastic litter

Updated Road Map through FY 2030 and Key Initiatives for FY 2024 and 2025


We have updated our road map to FY 2030 that was unveiled in 2020. On the earlier road map, we had the Business Development Phase from FY 2021 through 2023, the Business Expansion Phase from FY 2024 through 2026, and the Accelerated Business Growth Phase from FY 2027 through 2029. In the Business Development Phase, we intended to undertake the following three key initiatives:

  • Develop service products for the Social Systems Design Business
  • Make the Group's profit structure more robust
  • Transform the Group's organizational structure and culture

The development of service products for the Social Systems Design Business, which would have transformed our business, was not completed during the Business Development Phase as originally planned. This was partly because our product, sales, and organizational strategies were inadequately executed. We have therefore redefined FY 2024 and 2025 as the Groundwork Phase, in which to complete transforming our business.


More specifically, during these two years, we will create greater synergy among our businesses and services with a focus on Cyano Project, which is the centerpiece of our Social Systems Design Business, so that we will have a more robust revenue stream. Our primary focus during the Business Expansion Phase that follows is to use the CCC Initiative as a key driver for expanding the geographical coverage of MEGURU STATION®. During the Accelerated Business Growth Phase, we intend to bring the MEGURU PLATFORM fully into operation. Our vision for FY 2030 is to establish the MEGURU PLATFORM-driven business and achieve an ecosystem society.

Our five key strategies for the Groundwork Phase are as follows:


To maximize the sales opportunities for our service products and solutions, we will enhance the value proposition of Cyano Project and upgrade our marketing operations. This includes bundling our factory support service package, closed-loop recycling of industrial waste, waste management system, and BPO services into fully integrated sustainability solutions for corporate clients. Concurrently, we will establish a framework for value-marketing approaches to achieve greater cross-functional coordination and management among our corporate communication, marketing, and sales operations. This will enable us to get clients' buy-in for our services and build long-term relationships with them. Furthermore, we will assist clients in validating their business cases for switching to circular operations by offering MEGURU STATION® as a venue for a proof-of-concept field test.


Circular LinX, a joint venture established in April 2024 between AMITA and the Sumitomo Mitsui Finance and Leasing Group, will develop and offer new services to assist businesses in switching to circular operations, with a revenue target of one billion yen for FY 2028. Outside Japan, we intend to bolster revenue in our Malaysian business by expanding the customer base, and to lay the groundwork for a new business to be launched in Indonesia in FY 2027.

Financial Targets and Key Initiatives through FY 2030


Financial targets for the Groundwork Phase in FY 2024 and 2025

(In millions of yen; amounts rounded down to the nearest million yen)

FY 2023
FY 2024
FY 2025
Net sales 4,536 4,809 5,070
Operating profit 472 540 651
Ordinary profit 530 599 731
Profit 308 371 489
Operating profit margin 10.4% 11.2% 12.8%
Ordinary profit margin 11.7% 12.5% 14.4%

Key initiatives for FY 2024 and 2025

  • Establish a framework for value marketing, upgrade value proposition of Cyano Project to attract more clients
  • Drive the growth of our silicon-recycling business by tapping into the buoyant chip industry
  • Launch the Social Systems Design Business in Malaysia
  • Develop new business at Circular LinX Co., Ltd.

Key initiatives for FY 2026 and beyond

  • Use Cyano Project to drive the Group's revenue growth
  • Grow the service business at Circular LinX
  • Monetize the resource-recycling business in Indonesia
  • Establish the MEGURU PLATFORM

(Next update on this section is scheduled for February 2025.)