Asahi Kasei: Building an Inclusive Value Chain in India
Asahi Kasei Corporation (Asahi Kasei), a diversified company based in Japan, had partnerships with weavers in India for its cupro yarn, which was used to make traditional garments for Indian women. The company developed a unique, inclusive value chain in India and began focusing on enhancing the development impact of its operations there. With a growing market for cupro yarn in India, Asahi Kasei expanded the capacity of its production facility in Japan in 2014, even though the domestic market for the product was shrinking. However, in 2015, the product started to face intense price competition in India from viscose rayon, which was an inferior but cheaper product. In 2016, the company had to address the competitive pressures while considering its economic and social objectives. Savita Shankar is affiliated with Keio University. Masahiro Okada is affiliated with KEIO Business School.