Ayala unit, Zalora affiliate forming holding firm for logistics business

Conglomerate Ayala Corp. has firmed up a deal to create an investment holding company for the logistics business in partnership with German firm Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg, an affiliate of e-commerce platform Zalora.

In a disclosure to the Philippine Stock Exchange yesterday, AC said it had signed through subsidiary AC Infrastructure Holdings Corp. an investment agreement to build a company that would provide “fulfillment” solutions, referring to the process of receiving, packaging and shipping orders for goods such as for e-commerce.

AC Infra will hold up to 60 percent of the outstanding common shares of the new company while the remaining 40 percent will be held by Zalora affiliate, Brillant, subject to certain closing conditions.

“This investment forms part of Ayala’s strategy to develop infrastructure that will result in better efficiencies and improve the fulfillment goals of its existing businesses in real estate, banking, telecommunications, and e-commerce,” the disclosure said.

Last year, the Ayala group acquired a 49 percent stake in Zalora Philippines, a leading e-commerce platform.

More than 1,000 international, local and private-label fashion brands are available on Zalora Philippines.

Supporting Zalora’s local business, however, is a logistics backbone that includes hundreds of motorcycle riders, alongside warehouses and delivery hubs.  This is seen giving the new company a good starting point to expand the logistics business.

As more and more consumers embrace online shopping, like what is now happening in developed markets, demand for logistics down to the last mile of delivery is seen rising.

Other major conglomerates like SM Investments and Metro Pacific Investments have likewise gone into the logistics business to brace for the boom in e-commerce.