The country’s oldest business house, Ayala Corp., has formed a new company to serve as its vehicle for investment in the logistics sector, a high-growth sector linked to the burgeoning digital economy.
Ayala revealed to the Philippine Stock Exchange on Thursday that the Securities and Exchange Commission had approved the articles and regulations of AC Logistics Holdings Corp.
This wholly-owned subsidiary will focus on the group’s investments in the logistics sector.
At the conglomerate’s shareholders meeting earlier this year, Ayala chairman Jaime Augusto Zobel de Ayala noted that they were taking advantage of opportunities amid massive changes during the pandemic while positioning themselves for a postpandemic recovery. .
As the crisis accelerated the digital transformation of the Filipino consumer and the workplace, Zobel sees digital infrastructure powering many industries, including healthcare, education, banking, manufacturing, commerce, travel and entertainment. .
“Among these is logistics, where the pandemic has exposed massive gaps in this fragmented industry,” Zobel said.
Having seen the country’s requirement for efficient and reliable logistics to support the development of the digital economy, the Ayala group entered the logistics sector three years ago via its last mile delivery platform, Entrego Fulfillment Solutions.
Entrego has since established a national presence and has partnered with major e-commerce players in the country. It has significantly stepped up its operations over the past year, with revenue multiplied by 10 since 2018 and the volume of packages delivered having doubled since the start of the pandemic.
“We are looking to further develop our logistics portfolio in a more meaningful way and look for opportunities to expand our presence across the entire logistics supply chain, including contract logistics and freight forwarding,” said Zobel .
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