Aboitiz Family
No.7 of the Philippines 50 Richest is the Aboitiz Family. The Aboitizes is a family that came from Cebu City that runs operating businesses on power, banking, food production, integrated transportation and logistics (air/land/sea), property development, construction, shipbuilding and leisure/resort all over the Philippines called the Aboitiz Equity Ventures. The Aboitiz Equity Ventures, Inc. is the publicly-listed holding and investment management company of the Aboitiz Group. Aboitiz Equity Ventures’ mission is to create long term value for all its stakeholders. It is consistently recognized in international surveys of Asian companies as one of the Philippines’ best conglomerates. Aboitiz Equity Ventures that enters top 10 as fortune, earlier split and listed separately under patriarch Enrique who died in January, and his nephew Jon Ramon, now represents combined interest of wider clan. Cash- rich company is planning to spend $1.4 billion this year, mostly earmarked for its power business. In April, it agreed to partner with Ayala Land to develop properties in Cebu and bid for a new airport project. Announced plans in May to venture into water treatment and distribution. Jon Ramon Aboitiz is a Filipino businessman who graduated from the University of Santa Clara, California and took up B.S. Commerce, major in Management. After he graduated he already started Aboitiz Group in 1970. From a manager he became its president in 1976 and in 1991 became president of Aboitiz & Co. of the Aboitiz Shipping Corporation and also now the president of Aboitiz Equity Ventures Inc. Jon Ramon Aboitiz is looking forward now in airports or maybe water as opportunities for them. At this point in time, it hasn't come up yet but they are definitely interested about it. They like to concentrate on other areas where they feel they have the expertise and there's large potential growth. Too many parties have already expressed interest in the government's transportation and infrastructure projects. It could both be distribution or bulk water. For Jon Ramon Aboitiz water is a very important component of all our needs. And it is something we would be very interested to look at when the opportunity does come up.
A strong sense of business acumen lived through the legacy of the Aboitizes. In the 1920s Ramon Aboitiz’s refusal to declare bankruptcy of Aboitiz y Compania Incorporada proved that business astuteness and esteem could overcome such difficulties. Ramon Aboitiz wrote to Silva who is the Aboitiz y Compania Incorparada president and general manager at that time, He said that the biggest fortune that he have is his word and his reputation. He believes that money can be lost and can be recovered, but once reputation is lost and one’s word is worthless, one is surely finished. For him his word and reputation is more important than anything else including money.
The Aboitiz group evolved into a conglomerate rather than to remain as a mere trading company by taking calculated risks and it became the key through its survival through World War II and maintain its longevity up to the present. When Ramon Aboitiz acquired Cebu Ice & Cold Stores Corp., the company invested on buying new equipment. However, after upgrading the company’s equipment, electric refrigerators at that time are coming into fashion. A market study was inevitable and Ramon Aboitiz found out that only 20% of his clientele are able to afford the refrigerators so he pursued investing on Cebu Ice & Cold Stores Corp.
Through the years, the company was able to find great and new opportunities in businesses and selling their goods at the right time because of their right attitude taking calculated risks combined with a keen sense of timing which became essential business practice among the Aboitizes. Ramon Aboitiz’s timing is near perfect that his particular businesses are acquired sell at their peak. He sold goods with potential and sold them successfully and however bleak the business economy, his goods still sold and brought profit to the company.
When time passed by Jon Ramon carries the same attitudes and when the advent of the new century and the pervasiveness of technology comes it leads Aboitiz Equity Ventures to invest on the internet and e-commerce. For him every company need to have an Internet strategy because future business is completely intertwined into the Internet and e-commerce.
Aboitiz’s family business has been passed on for many generations until now and they have maintained a smooth transition from one generation to the next. They greatly value their business that’s why they are now enters the top 10 as fortunes in the Philippines 50 richest.