Ayala unit allots P700m for logistics operations

Conglomerate Ayala Corp., through recently formed logistics unit Entrego Logistics Solutions, has committed to spend P700 million to further expand the operations.

Ayala Infrastructure Holdings Corp. president and chief executive Rene Almendras said in a chance interview over the weekend his group was always looking at logistics to address the growing need to move goods.

“It is about the new economy and new realities and consumer preference. So we are putting up a soft infrastructure to move goods. It is a start-up company. We have budgeted P700 million but that is scalable,” Almendras said.

He said Entrego, which offers technology based end-to-end logistics fulfillment solutions, was doing well with 10,000 deliveries daily and a 99.6-percent on-time delivery in Metro Manila and 98.4 percent in areas outside the capital region.

Almendras said the company was keen on more acquisitions and investments in the logistics sector.

“We have been studying the ecosystem and we noted the ecosystems that are merging and the evolution of some... it is creating an evolution which is not new because it is happening in United States, Europe and in Asia,” he said.

“We believe the Philippine version is beginning to happen and we are making sure that it works well and it will happens that way it should be,” he added.

Ayala in August said it firmed up plans to create an investment holding company for the logistics business in partnership with Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg of Germany, an affiliate of e-commerce platform Zalora.

Under the joint venture, AC Infra will hold up to 60 percent of the outstanding common shares of the new company, with Brillant owning the balance of 40 percent. 

The Ayala Group last year acquired a 49-percent stake in Zalora Philippines, a leading e-commerce platform

Ayala Land’s unit Prime Orion Philippines Inc., meanwhile, is being positioned as a developer of logistics facilities and industrial parks.

Conglomerates like SM Investments Corp. and Metro Pacific Investments Corp. since 2017 have also been investing in the logistics industry in anticipation of the boom in e-commerce.

Topics: Ayala Corp. , logistics operations , Entrego Logistics Solutions , Ayala Infrastructure Holdings Corp.
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