Ayala group’s next-gen leaders chart path to 200^th year with synergy, sustainability

THE Ayala group’s next-generation leaders are focusing on synergy and sustainability to drive the conglomerate’s growth as it approaches its 200^th year while navigating economic uncertainties and shifting market dynamics.

“We’re nine years away from the year 200. We really feel that our core portfolio will carry us to a leadership position by the year 200. But to differentiate and separate ourselves further, synergy needs to be a big part of our strategy,” Jaime Alfonso Zobel de Ayala, chief executive officer of AC Mobility Holdings, Inc. (AMHI), said at a media event last week.

The young Ayala, son of Ayala Chairman Jaime Augusto Zobel de Ayala, said that the company has developed its portfolio in a way that is close to the consumer.

“One of the advantages that we have is we can use strategic assets already in place that are close to the consumer,” he said. “We’re doing it in retail right now. We’re leveraging telecommunications and our real estate footprint to generate better returns from retail.”

Founded in 1834, Ayala Corp. has become a prominent player across different sectors, with its core businesses in real estate, banking, telecommunications, and power. It then expanded its portfolio by venturing into healthcare, logistics, manufacturing, education, infrastructure, and the automotive industry.

“The Ayala portfolio has been developed to address major national pain points. And so, we’ve built a portfolio that’s mainly in the B-to-B (business-to-business) segment — power generation, real estate development, banking. And we’re primarily operating in a consumer-driven economy. That’s the main driver of growth,” Mr. Zobel said.

Moving forward, Mr. Zobel expects an “exciting period” ahead as the company prepares for its 200^th year.

“It’s about a decade of execution on the planning that we’ve done. We’re excited to fulfill the potential of the Ayala brand and what the institution means to a variety of stakeholders. We frankly have the tools to deliver on that proposition,” he said.

“How exciting it is to do this at a time when there are so many services and different kinds of products needed in this evolving landscape. So, I think it’s just a really exciting decade ahead,” he added.

Jaime Z. Urquijo, chief sustainability and risk officer of Ayala Corp., stressed the importance of making sustainability the core purpose of businesses.

“Sustainability, at its core… starts with the purpose of Ayala Corporation — building businesses that enable people to thrive…Ultimately, what really enables individuals to thrive, and what kind of businesses can support that?” he said.

Mr. Urquijo also highlighted the transformation occurring within the group.

Part of this includes the company’s property business through Ayala Land, Inc., led by Mariana Zobel de Ayala, another next-generation leader of the conglomerate.

“I think of Ayala Land and the incredible transformation that’s now occurring in the malls and hotels business, obviously being run by Mariana. It’s incredible — the new level of detail now being demanded in that space,” he said.

Looking ahead, Mr. Zobel acknowledged uncertainties and volatility due to changes in geopolitical relationships and supply chains.

“The choices we’re making right now for the portfolio are being made in a way that provides us with the right options,” he said.

“Consumer behaviors are changing, and organizations need to evolve accordingly. But I think when you look at where we’re deploying capital, even geographically, we’re doing it with an awareness that we’re operating in an uncertain environment. We need flexibility, and that’s how our portfolio is evolving,” he added.

Despite potential risks that the company may face in the near term, Mr. Urquijo remains optimistic about the Philippines’ growth potential in the coming decades.

“I think it’s very easy to get bogged down by the very real risks we’re facing over the next six to 12 months. But when we step back and look at the 190-year history of this company and use that as a lens to view the next 10 to 20 years, we see that we’re in a unique country with huge potential,” he said.

“If we look at how the country is growing, there is a very strong chance that the whole economy will double in size over the next 10 years. I mean, that’s mind-blowing to consider — the opportunities that will unlock. We’re excited to play our part in helping the country on this journey, and overall, we remain very bullish,” he added. — Sheldeen Joy Talavera