Ayalas aims to double profit to P50B by 2020
Conglomerate Ayala Corp. is breaking into motorcycle manufacturing business via its P600 million joint venture with Austria-based KTM AG in a bid to double its net income by 2020.
KTM AG, one of the world’s leading motorcycle manufacturers, has tapped Ayala Corp. as the exclusive local distributor of its wide range of off-road and street motorcycles in the Philippines with an estimated annual production of 20,000 units.
The motorcycles, which will be built in Integrated Micro Electronics Inc.’s facility in Laguna, will be exported to China and Southeast Asian countries.
With the group looking at manufacturing as a new driver of growth, AC is expanding its existing offerings under its automotive group to grow its net profit to P50 billion by 2020.
“We are delighted to have found a strong and capable Asian partner in the Ayala group, one of the leading conglomerates in the Philippines, a country we view as a key platform for achieving our global growth strategy. Ayala’s capabilities in manufacturing, distributorship and dealership, as well as its regional expertise and excellent reputation, make them the ideal strategic partner for our READY TO RACE aspirations,” said KTM CEO Stefan Pierer.
Bilyonaryo Jaime Zobel De Ayala, chairman of AC, said the company remained upbeat on its “investments in new platforms particularly power and transport infrastructure, healthcare and education, and automotive and manufacturing.”