The Saga of Sogo Shosha
In the world of corporate warriors, here is a global giant that can boast of Samurai blue blood. Welcome to Mitsui, the largest general trading company in Japan and one of the world’s leading industrial trading conglomerates. Officially established in 1947, the $112-billion Mitsui & Company encompasses a diverse and extensive array of business activities, ranging from iron and steel products (as also raw materials and non-ferrous metals); power, transportation and plant projects; machinery; information, electronics and communication; chemicals (comprising plastics, organic chemicals and inorganic chemicals); energy (liquefied natural gas); consumer services and goods (including foods and retail, lifestyle); financial markets; and transportation logistics.

Mitsui & Co, the world-reputed sogo shosha (trading firm), ranked No 6 on the Forbes international list and No 11 on the Fortune 500 list, boasts of operations across 160 offices in 79 countries and over 700 subsidiaries across the globe.

Legend has it that around 1100 A.D. a member of the Fujiwara family, Umanosuke Nobunari, decided to shift from Kyoto to live in the nearby Omi province. The new settler, while examining his property along the shores of Lake Biwa, discovered that it had three wells.

In one of them he found a treasure of gold coins. To celebrate his good fortune he changed his name to Mitsui, meaning “three wells”. The founder of the House of Mitsui showed rare foresight in voluntarily abandoning the family’s Samurai status to become a merchant, or a chonin. Starting out as a small brewery for making sake and soy, expanding to a modest draper’s shop and then a money exchanger, Mitsui eventually became a huge conglomerate. It now encompasses practically every type of business and industrial enterprise.

After the feudal regime collapsed in 1868, the House of Mitsui provided valuable expertise and resources for the building of a new Japan. As the government’s fiscal agent, it received deposits, disbursed funds and handled trade. It even issued its own paper currency, as its credit was considered even better than the government’s. It was no accident, therefore, that Mitsui was regarded as the de-facto Ministry of Finance of the Meiji government until the establishment of the Bank of Japan in 1882.

Mitsui Bussan Kaisha (MBK), known abroad as Mitsui and Company, spanned the globe with its trading and shipping networks.

Its trade and overseas investment programmes boosted the nation’s power and prestige. It eased the way for Japan’s expansion into the foreign market and gave it access to vitally needed raw materials. Among the Zaibatsu (Japanese for conglomerate or cartel), Mitsui stood out as an advocate of peaceful trade and international goodwill.

Constant restructuring to meet the challenges of the ever-changing business scenario has enabled Mitsui to provide its clients, value-added services. It has thus, has retained its position as a leading global trading house. Supported by a network of offices and subsidiaries in over 83 countries, Mitsui utilises its in-depth knowledge and experience to tap new markets and cater to the client’s requirements.

The Indian Passage
Mitsui’s relationship with India began over 100 years ago with the opening of its first office in Mumbai way back in February 1893. The primary business then was the import of Indian cotton and textile as it was comparatively cheaper and easily available than Japanese and Chinese yarns.

Post-World War II, then Indian prime minister Jawaharlal Nehru opted for an independent and separate peace treaty with Japan in 1952. Japan reciprocated by choosing India as the first destination as part of its Official Development Assistance programme. These bilateral developments opened a new chapter in Mitsui’s history in India.

During the 1960s, when Japan took giant strides in post-war economic progress, Mitsui acquired and developed various sources of iron ore vital to the reconstruction of Japan. These included Australia, China and India, among others. Mitsui played a major role in financing and developing the iron ore industry in India. The idea of developing iron ore deposits was first proposed when several Japanese companies, including Mitsui, came together with the National Mineral Development Corporation of India and expressed an interest in such projects. Apart from project loan financing for the Bailadila mines in the central Indian state of Chhattisgarh and Kiriburu mines in Jharkhand (an eastern state created out of Bihar in 2000), Mitsui was also involved in the preparation of a detailed project report and pilot plant studies for the development of the Kudremukh iron ore mines in the south Indian state of Karnataka.

Now, as an IT-enabled general trading company, Mitsui’s business in India ranges from traditional sectors like iron and steel, chemicals, fertilizers, textiles, food products to new-age sectors like nanotechnology, information technology, telecommunications and entertainment. However, Mitsui’s forte remain infrastructure sectors such as ports, power, energy and logistics.

Poised to Excel
In April 2004, in order to bolster Mitsui & Co’s global growth, the company set up a broad regional operation in South-West Asia, encompassing eight countries - India, Pakistan, Sri Lanka, Bangladesh, Nepal, Bhutan, Afghanistan and Maldives. Mitsui & Co has a total of 14 offices in five South-West Asia countries.

As an IT-enabled industrial services company, Mitsui’s business ranges from traditional sectors where India is poised to enter increased growth bands (minerals, metals, chemicals, machinery, energy/power, fertilizers, textiles, food products and general merchandise), to new areas where the country is swiftly establishing its distinct and highly competitive position in the global value chain (information technology and IT-enabled services). Recognising the fact that a strong infrastructure is
the foundation for a successful economy, the company places a keen thrust on infrastructural development, underscoring its importance as a key instrument required to sustain the IT revolution and trigger economic growth. Mitsui believes that it is of critical importance to invest in energy, roads, ports and telecommunications projects in India.

Further, the company desires to maintain export as a key driver of its business operations in the region. Mitsui has conventionally been involved in the export of iron ore, coal, textiles, tea, chemicals and machinery for infrastructure.

The company’s operations in India span across seven major business centres of the country. Spearheaded by the New Delhi operations, which function as the cornerstone of Mitsui’s business activities in India and acts as the corporate and strategic management hub for the entire South-West Asian region, Mitsui & Co is also located at Mumbai, Chennai, Kolkata, Bangalore, Goa and Hyderabad.

In order to keep pace with the changing business scenario, Mitsui & Co has devised creative services and functions for value addition to its clients and customers. This comprises leading-edge information technology, financial technology and logistics technology solutions - all of which lead to a concept known as the Value Creation Hub.

Correspondingly, synchronising its activities with the parent company, Mitsui India has laid special emphasis on streamlining its services in these fields in order to develop business models best suited to the Indian subcontinent. Augmented by the parent company’s worldwide network, Mitsui India, with its vast expertise and insight in business processes, coupled with the highest quality partners, offers a comprehensive repertoire of services tailored to suit client requirements.

Corporate Social Responsibility Initiatives

Mitsui has constantly endeavored to fulfill its social responsibility by increasing its contribution to the country’s economy, improving the quality of life of its citizens, community development programmes as well as protecting the environment.

Keeping in line with Mitsui & Co’s global emphasis on corporate social responsibility, Mitsui’s India operations reflect the parent company’s management principles in every aspect of corporate activity. Mitsui’s employees share the common values and goals of ‘Challenge and Creation’, ‘Broad and Open-mindedness’, and ‘Contribution to Public Good.’

Mitsui India has undertaken the initiative to address the issue of poverty in the country through the ‘Development of Children’ programme. As part of this endeavour, the company has partnered the SOS Children’s Villages and contributed towards an independent ‘Learning Centre’ at the SOSCV Bawana Village.

In 1993, in order to commemorate 100 years of Mitsui’s existence in India, Mitsui & Co formed a trust in the contry under the name - Mitsui & Co Environmental Engineering Trust (MEET) - whose principal objective is to conduct research and development in the field of environment preservation and conservation technology.

Subsequently, MEET has entered into a memorandun of understanding with the Council of Scientific and Industrial Research (CSIR), and the Ministry of Science to fund environmental preservation and engineering research projects.

Further, the company has introduced a novel dehydration technology, which is far more energy efficient as compared to the conventional process. Mitsui has introduced this unique technology through a 30-KLPD capacity commercial ethanol dehydration plant set up for Daurala Sugar Works - the first of its kind in India. The company’s belief in the significance of Corporate Social Responsibility is evident in the programmes conducted by the company towards the training and development of its staff.

Strategising to Lead
As announced by president and chief executive officer of Mitsui & Co Ltd, Mr Shoie Utsuda, in 2004, the central theme of Mitsui’s new strategic plan, titled ‘Global Growth 2006’, is “Meeting the Challenge – A New Stage of Growth.”
The company’s strategic endeavours reflect its conviction that the only way to continually deliver strong performance and ensure consistent growth is to pro-actively change and evolve with the times – quintessential in today’s volatile business environment.

Certain tactical initiatives etched out by the company to build the foundation for this sustained growth comprise accelerating investments to drive new growth, a persuasive thrust on improving the performance of its subsidiaries and associated companies as well as refining corporate governance and internal control.

Closer home, Mr Takao Miyachi, CEO, Mitsui & Co South-West Asia operations, has identified infrastructure and export as areas possessing critical potential for growth in the region, specifically, India. Addressing the industry scenario in India, and touching base with the conglomerate’s global outlook, the focal point of Mitsui & Co’s strategic approach in the country is to formulate effective and enduring alliances with companies possessing mutually supplementing capabilities.

The company is resolute in its belief that consolidation and alliances hold the key to survival and expansion in the prevailing dynamic business environment. The company believes in such trading alliances to provide world-class service and commitment to its partners and clients, leveraging the sheer magnitude of Mitsui’s international network.

The Legend Lives on
Mitsui & Co symbolises a genuine, indubitable global corporation, born in Japan and reared in the world. One of the most diversified and comprehensive trading companies in the world, Mitsui reported total trade transactions of $120 billion in 2003. The company has been unflinching in its dedication toward creating the utmost extent of customer value through a potent combination of goods, services and investments.

This spirit, which dates back to Mitsui’s origin as a company, underlies all its activities and beliefs. As expressed by CEO Mr Utsuda, to consistently deliver quality work that reflects the distinctive strengths and character of Mitsui as a global organisation – that is the corporation’s commitment. A commitment which the global giant has not only honoured - but exceeded - in every endeavour.

Mitsui represents continuity and change; an evolution of the economic growth and development of Japan during the past 300 years. Mitsui does not just signify a commanding global colossus – it is a timeless epic – the glory of which will prevail and pervade in nearly every sphere of international business activity for ages to come.