Fujifilm (Malaysia) Sdn Bhd managing director Kensuke Aragane- KAMARUL ARIFFIN/The Star
KUALA LUMPUR: Fujifilm Holdings Corp is a company that has endured tumultuous times, and yet is still standing tall.
Established in 1934 in Japan, the resiliency of its leaders and its strategic play on how to pivot when needed, resulted in the company riding out the storm even as some of its competitors have declared bankruptcy.
Fujifilm (M) Sdn Bhd managing director Kensuke Aragane told StarBiz that the photo industry experienced a drastic drop in demand due to the fast spread of digital cameras and smart phones some 20 years ago.
“As the newer generations began turning to smart phones to capture photos, we realised that this was the point of change in strategy and structure that we had to undertake.
“We knew we had to continue evolving if we wanted to stay in the game,” he said.
Other than changing its name to just Fujifilm, the decision to divest into other areas of business has propelled the company to greater heights.
According to Aragane, the name change went simultaneously with the company diverging into different divisions.
“We removed the ‘photo’ because we had now spread ourselves to other areas.
“But the thing that remained was our core technology, which was used in every segment that we ventured into,” he noted.
Pairing its core technology with digitalisation, Fujifilm ventured into four main segments including imaging, healthcare, materials and business innovation.
According to Aragane, the healthcare division has been the biggest revenue contributor, amounting to 32% for the financial year ended March 2023.
The groups’ healthcare now includes medical systems such as the X-Ray diagnostic system, mammography, ultrasound devices and medical IT.
“We started off with X-Ray systems, and we are the number one brand for this currently in Malaysia.
“We have also achieved this because of our after-care services that we provide,” he said.
Meanwhile, the materials division, which contributes 24% to the group’s revenue, is also one that is fast growing with an 80% market share globally, said Aragane.
Fujifilm provides magnetic tapes to a number of data centres, given its ability to store large capacities and relatively low cost, among other factors.
“Our materials division includes high-functioning advanced materials used for electronics and display devices as well as industrial products, recording media and fine chemicals,” he added.
Aragane noted that the imaging division, which currently contributes the least to the group’s revenue at 15%, still has plenty of potential to grow.
“Since developing the world’s first fully-digital camera in 1988, Fujifilm has been pioneering the advancement of digital imaging,” he added.
Meanwhile, Aragane said one of the newer strategies that Fujifilm embarked on to remain competitive was to venture into the cosmetics business.
“Astalift uses our anti-oxidisation, collagen and nano technology.
“It was first launched in Japan but is now marketed in Europe, China, the United States, Singapore and Indonesia,” he said.
Aragane also said the company is looking into expanding but for now, competition in the skincare industry is high.
Moving forward, he said one of the main strategies is to promote priority measures and reinforce the business portfolio management now that the company prides itself on being a conglomerate.
“Another important aspect is to be mindful of the cash flow and manage that well now that we’re entering into new markets for further growth, especially in imaging and healthcare.
“We are always on the lookout for new business opportunities,” he said.
And for a company to successfully evolve with the times, research and development (R&D) is vital to ensure any expansion or introduction of new products are well explored, he added.
“One of the top priorities in Malaysia, for example, is to enhance further into healthcare since that division has done and is doing so well.
“Fujifilm is preparing for a full lineup of more comprehensive products, including magnetic resonance imaging and endoscopes,” Aragane said.
He explained that especially for the pharmaceutical industry, plenty of R&D is needed, sometimes taking up to 15 years.
“In 2021 until this year, Fujifilm has invested 1.2 trillion yen, so this shows how important this area is for us to continue providing the best quality that we can,” Aragane said.
