The country’s oldest business house, Ayala Corp., has incorporated a new company to serve as its vehicle for investments in the logistics sector, a high-growth sector entwined with the booming digital economy.
Ayala disclosed to the Philippine Stock Exchange on Thursday that the Securities and Exchange Commission had approved the articles of incorporation and by- laws of AC Logistics Holdings Corp.
This wholly owned subsidiary will focus on the group’s investments in the logistics sector.
During the conglomerate’s stockholders’ meeting earlier this year, Ayala chair Jaime Augusto Zobel de Ayala noted they were capitalizing on opportunities amid the massive shifts taking place during the pandemic while positioning for a postpandemic recovery.
As the crisis accelerated the digital transformation of both the Filipino consumer and the workplace, Zobel sees the digital infrastructure powering many industries, including health, education, banking, manufacturing, commerce, travel, entertainment.
“Among these is logistics, where the pandemic highlighted massive gaps in this fragmented industry,” Zobel said.
Having seen the country’s requirement for efficient and reliable logistics to complement the rise of the digital economy, the Ayala group entered the logistics industry three years ago through its last mile delivery platform, Entrego Fulfillment Solutions.
Entrego has since then established a nationwide footprint and linked up with major e-commerce players in the country. It has ramped up its operations significantly over the past year, with revenues growing 10 times since 2018 and volume of delivered packages doubling since the start of the pandemic.
“We are looking to further develop our logistics portfolio in a more meaningful way and are looking at opportunities to expand our presence across the broader logistics supply chain, including contract logistics and freight forwarding,” Zobel had said.