Toyota Tsusho Corporation ("Toyota Tsusho") announced that today it concluded a joint venture agreement with Tokai Corporation ("Tokai") to establish a company providing medical treatment-related services, such as linen supply services, to hospitals in India.

Since 2014, Toyota Tsusho, together with Secom Medical System Co., Ltd., has operated Sakra World Hospital in Bengaluru (Bangalore) in southern India. It has faced different operating challenges than those encountered in Japan, steadily making improvements as it raises the quality of medical care offered at Sakra World Hospital and contributes to the development of regional medical care.

There are no local companies that provide the Japanese-style high quality linen collection, laundering, storage, and management services that are necessary for infection control. Because of this, since the hospital began operation, Toyota Tsusho has worked with local operators, with the support of Tokai, one of Japan's leading companies in this field, to tackle the challenges presented in area essential for infection control, such as linen services, and raise the quality of those services.

India is experiencing a high level of economic growth and its middle class is growing. This is creating a heightened need for high quality medical care and a strong demand for quality improvements not only for linen services but for the entire infection control field.

We have therefore decided to establish a joint venture that will supply the high-quality medical treatment-related services that we have refined at Sakra World Hospital, fusing Toyota Tsusho's strengths of Toyota Way field improvements and operational efficiency improvement expertise with Tokai's strengths of Japanese-style infection control technologies and medical peripheral business know-how.

After it is established in Bengaluru, the new company will begin preparing to do business starting in October 2022. Initially, it will provide efficient, high quality linen supply services encompassing everything from delivery to inventory management, collection, and laundering, in the Bengaluru area, building a new linen supply business model for the Indian hospital market. It will then expand its operations to other major cities. Ultimately, it will aim to provide various medical treatment-related services, not just linen supply services, to meet India's needs.

By supplying high-quality hospital operation services and high-quality medical treatment-related services within India, Toyota Tsusho will provide safer medical care that offers greater peace of mind, contributing to the advancement of regional medical care.

Company name	VALABHI HOSPITAL SERVICES PRIVATE LIMITED
Location	Bengaluru, Karnataka, Republic of India
Establishment	September 2022(planned)
Investment ratio	Toyota Tsusho Corporation: 55%, Tokai Corporation: 45%
Business description	Linen and medical equipment leasing

Company name	Tokai Corporation
Location	9-16 Wakamiya-cho, Gifu City
Representative	Representative Director Koji Onogi
Establishment	July 1955
Capital	8.108 billion yen
Business description	Hospital linen supply and medical peripheral business contracting Nursing care equipment rental Dispensing pharmacy operation (Tampopo Pharmacy Co., Ltd.) Rental of Leasekin brand environmental beautification products Rental of bedding to lodging facilities, etc. Catering services for hospitals, etc. (Tokai Foods Co., Ltd.) Cleaning and management services for buildings such as hospitals (T-assist Co., Ltd. and Bilmen Co., Ltd.) Aqua Clara brand water delivery Etc.