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5 Richest Companies in Japan

5 Richest Companies in Japan

Japan is currently the third richest country in the world in terms of nominal GDP with an annual GDP of over $5 billion. Therefore, it’s no surprise that the country happens to be home to some of the largest corporations in the world.

The majority of companies discussed here are conglomerates in the automotive industry.

In this post, we will highlight the 5 richest companies in Japan in terms of annual revenue. The company’s net income (profits), total assets, and market cap- the company’s overall value, obtained by multiplying the total number of outstanding shares the company has by the price of each share.

5. Nippon Telegraph and Telephone

Nippon Telegraph and Telephone is the only company on this list to be founded on two different dates. NTT was initially founded in August 1952 by the Government of Japan as a monopoly. It was then re-established and privatized in 1985 to promote competition in the Japanese telecommunications market.

In terms of revenue, NTT also happens to be the fourth-largest telecommunications company in the world.

Industry – Telecommunications

Revenue – $109 billion

Market cap – $83 billion

Assets – $2.11 billion

Net income – $7.87 billion

Headquarters – Otemachi, Chiyoda, Tokyo

4. Japan Post Holdings

Japan Post Holdings is a Japanese publicly traded conglomerate founded on January 23, 2006. The company operates in finance and logistics, financial window business, life insurance, and banking, as well as mail delivery.

As of 2013, the company was ranked as the 13th largest company in the world. However, it has since plummeted to number 72. It also happens to be the second-largest Japanese company in terms of assets with its total assets amounting to $2.64 trillion.

The conglomerate operates through four main companies, viz:

  • Japan Post Bank – Deals in financial and banking functions
  • Japan Post Insurance – Provides life insurance
  • Japan Post – Runs the post offices and engages in mail delivery
  • Toll Group – Provides logistics and transportation

As of 2020, the Japan Post Group is owned by the Government of Japan (56.87%) and the Japanese Minister of Finance (14.61%).

Industry – Conglomerate

Revenue – $109 billion

Market cap – $32.7 billion

Assets – $2.64 trillion

Net income – $4.44 billion

Headquarters – Kasumigaseki, Chiyoda, Tokyo

3. Mitsubishi

Mitsubishi is a group of different autonomous Japanese companies operating in a variety of industries. The company was founded in 1870 by Iwasaki Yataro.

Mitsubishi descended from Mitsubishi Zaibatsu, a unified company that existed between 1870-1946. The events of World War II, however, led to the disbandment of the company.

The disbandment led to the formation of four companies ― MUFG Bank (the largest bank in Japan), Mitsubishi Corporation (a general trading company), Mitsubishi Electric, and Mitsubishi Heavy Industries (both being diversified manufacturing companies) ― which operate autonomously and are independent of each other.

MUFG Bank – Operates in the financial sector and is the largest bank in Japan.

Mitsubishi Corporation – Founded in 1950 and is Japan’s largest general trading company.

Mitsubishi Electric and Mitsubishi Heavy Industries – They’re both diversified manufacturing companies. They run a wide range of companies including Mitsubishi Motors, the sixth-largest Japanese auto manufacturer, and Mitsubishi Chemical, the largest chemical company in Japan.

Mitsubishi is currently the 42nd largest company in the world.

Industry – Conglomerate

Revenue – $135 billion

Market cap – $32.4 billion

Assets – $167 billion

Net income – $4.9 billion

Headquarters – Tokyo

2. Honda

Honda is a Japanese multinational conglomerate which deals in the manufacturing of motorcycles, automobiles, and power equipment. The company was founded in October 1946 by Soichiro Honda and Takeo Fujisawa.

Honda is also involved in the manufacture of power generators, personal watercraft, marine engines, and garden equipment. Notably, Honda has been the world’s largest manufacturer of motorcycles since 1959, with a production output reaching 400 million as of year-end 2019.

The popular luxury brand, Acura, is owned by Honda. The release of Acura in 1986 made Honda the first Japanese auto company to own a dedicated luxury brand.

Honda also happens to be the world’s largest manufacturer of internal combustion engines with a production output exceeding 14 million as of 2019.

Currently, Honda ranks as the 39th largest company in the world.

See Also

Industry – Conglomerate

Revenue – $137 billion

Market cap – $42 billion

Assets – $188 billion

Net income – $4.1 billion

Headquarters – Minato, Tokyo

1.Toyota

Toyota is a Japanese manufacturer of automobiles. The company is currently the second-largest car manufacturer in the world, behind Volkswagen, in terms of revenue.

The company was founded on August 28, 1937, by Kiichiro Toyoda. Toyota also owns several brands such as Lexus and Prius.

Toyota is also the second-largest company in Japan in terms of market capitalization, with a valuation twice as much as that of the second-largest, Softbank.

On the Fortune Global 500 list which ranks the top 500 largest corporations in the world, in terms of revenue, Toyota ranks as the 10th largest.

In 2012, Toyota broke a record by being the first auto manufacturer to produce an excess of 10 million vehicles in a year. Eight years ago in 2016, Toyota manufactured its 200 millionth vehicle.

Industry – Automotive

Revenue – $275 billion

Market cap – $202 billion

Assets – $492 billion

Net income – $19 billion

Headquarters – Toyota City

Conclusion

Japan surely holds a lot of achievements and records to its name. 53 of the world’s top 500 largest companies are Japanese companies. 

Also worth mentioning is the fact that the Tokyo Stock Exchange is the world’s third-largest and most capitalized stock market, with a market cap exceeding $5 trillion.

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