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Added Value Keeps Profits

Published November 14, 2005
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JAPAN: Kao Corporation’s sales rose 6% for the first fiscal half. Executives said technology has helped sales through value-added ingredients. For example, Kenko Econa cooking oil is billed as “making the body less likely to make fat” and costs three times the average price. Kao said it spends 20% of its R&D on basic areas to beef up its technology. Executives plan to expand in China.
In other news, reports said Kao has increased its efforts to profit from intellectual property by licensing its patented technologies. The company holds 3,500 patents in Japan and the same number overseas. Currently, the company is promoting the licensing of 12 packaging material patents.

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