Denyo: generator brand of choice

What is the essence of “Monozukuri” and how do you implement it in your company?

Our company was founded in 1948, after world war two. At the time, we started from zero and tried to catch up to western countries by manufacturing goods and also replicating the western products. To make better products that match the needs of the Japanese citizens, our value of monozukuri evolved. 

Denyo first started to manufacture welder machines utilized in indoor spaces. But at the time, there were rival companies, so in order to compete against them, we specialized in engine-driven welders utilized in outdoor spaces, such as at construction sites, which was new at the time, and put more effort into it. Our focus was not to compete with other big-name companies like Matsushita (currently Panasonic) and OTC (DAIHEN), but to provide better welders for workers in the outdoors: this is the foundation of Denyo.

First, we learned from the American-made welders. Then, we modified our welders to best suit Japan, and that is how we became the first manufacturer of engine-driven welders in Japan. Subsequently, we start production of engine-driven generators and engine-driven compressors, and we have the top share of engine-driven welders and engine-driven generators in Japan.

How do you maintain the quality of Denyo products manufactured overseas?

There are standards set by our company. We will have the same standards in overseas factories. We send Japanese workers to teach foreign workers. Also, foreign staff come to Japan to receive training and learn the essence of monozukuri.

There are three trends in global generator market: emission regulations of diesel engines, growing popularity of gas generators to reduce noise pollution, and bi-fuel portable generators. What is your point of view on these trends and how is Denyo adapting to this situation?

First of all, we do not manufacture engines. We select the best quality engines from the engine market. The regulation in Japan is at stage 3, the US is at stage 4, and Europe is at stage 5. We select different engines from different engine manufacturers to fulfill our needs. Recently, we began manufacturing natural gas generators. Unfortunately, we are not manufacturing any bio-diesel engine driven generators. One of the reasons is that engine manufacturers do not provide warranties with their products. However, some clients buy our products and use bio-diesel at their own risk.

You have a philosophy of “benefits for three parties.” Can you give us the key dates of your history and the meaning of your philosophy?

“Benefits for three parties” expresses our aim to see “the user (customer)”, “the seller (dealership)”, and “the manufacture (Denyo)” prosper together through our products. Our founder wanted to contribute to the workers in the outdoors using the engine driven welders and engine-driven generators. So, our company policy was to make a product that will help society. When Japanese companies expanded to foreign markets, they took our generators and established them in oversea factories, and sent Japanese staffs for the maintenance of generators since the outdoor-set generators get exposed to rain and wind, which causes damages.

Having the staff close to the product provided ease to the workers and also lead to enhancements of the generators overtime. This is how we established ourselves in the market. Our strength is that our products are durable, which is crucial to a machine utilized outside. Our products have been used for 30-40 years on sites including factories overseas, which is not good for our business but proves the durability of our product.

You have a high-quality product, used for decades, and this technical shrinking could negatively impact your business. How do you stay competitive in the market?

We always have been providing what the clients wanted. Regarding our generators, each client has specific needs of specs; that is why we manufacture generators of variety in small quantities. We are not involved in the market of providing cheap generators with reduced specs.

The generator market is huge; Denyo mainly targets demand from construction sites, resources development and the rental market where generators that can endure harsh environments are in need.

Is there any specific product that you want to talk about?

Since Japan is an island with limited space, we focus our products to be compact, lightweight, silent, and powerful. Moving forward, we are putting our efforts on developing products that are more environmentally friendly.

Do you have any upcoming products that are environmentally friendly?

In terms of sound-proof products, recently we developed one of the world’s quietest generators, the Malie DCA-25MZ. The sound of this generator is as quite as in a library. There is also a generator under development which uses fuel with hydrogen added to the fuel they have been using. We are in the testing phase for this new generator.

What role does R&D have on Denyo?

As a manufacturer, we are developing something new and more useful; that is why it is important to hear the voice of the clients. We make our R&D teams go out and observe the clients’ workspaces and strive to positively absorb their needs.

How does collaboration with other companies help Denyo? Do you always look for partners?

We are always looking for partners, but it is difficult to find partners with the same target in the market. Usually, overseas distributors give us feedback and we develop new products together.

Last year, Denyo has hit 62.88 billion yen in terms of turnover. Could you talk about the company’s growth?

The generator market has potential to grow more since our society is dependent on electricity. Of course, a large amount of electricity is provided by the electric companies, but when natural disasters happen, portable generators will be crucial to help people affected by catastrophes. The machine power to provide instant electricity is our field that we want to enhance. The same generator used in factories could be used in emergencies like during natural disasters. Our products have potential applications in various fields, and it is expected these applications will expand further.

Denyo products are used in more than 150 countries. What is your overseas strategy?

Our sales areas are Japan, the US, Asia, Middle East, Russia and other countries including Europe. Currently, the US market accounts for a large share of our overseas sales, but we would like to balance our businesses/shares in Asia and the US markets in future. It is difficult to expand our shares in Europe since there are many rival companies there.

How do you differentiate those European rival companies from Denyo?

Our sales features are that our product is durable and can supply high quality power. So our products can be used anywhere, such as in the deserts of the Middle East or extreme cold in Russia. 

How do you find local distributors overseas? Are you planning to expand the distribution segment?

As our generators are used outside, eventually they will break down. Therefore, we work with distributors that can provide maintenance service to the clients; there are not many companies that provide this service. Our task now is to find more distributors that not only distribute our products but also are able to provide the maintenance services.

In Japan, the US, and Europe, there are many rental companies supplying generator products. So, the rental services provide maintenance services for the customers. In contrast, in Asia and the Middle East, these rental services are not widely spread. If these rental services are established in those areas, we will be able to expand our shares.

Are you actively looking for partnerships with other countries?

It is challenging. First, we need the assurance that we could manufacture our products in the country. Then, we want to gain trust from the country and show them once we establish a factory there, we are not going back. In this way, we can provide local people with stable employment.

Which region holds the future of the company?

I have to say it is Asia. There are many countries in Asia, but the sales from each country are still small. However there is a possibility of significant growth in the future.

If we were to come back in 10 years to interview you, what would you like to tell us? What would you like to have accomplished by then?

As I mentioned with R&D, we would like to utilize various fuels like hydrogen and batteries, which are environmentally friendly. Unlike large scale companies, our small company can specialize in specific areas and develop unique products. In 10 years, I hope we can diversify our products even more and strengthen the bonds of trust in the world.