By James A. Loyola
The AAI Group of Companies (AAI Group), the Brizuela family’s Total Logistics organization, is planning to raise P3 billion to P5 billion from an initial public offering by 2020 to fuel the rapid growth in its new retail express delivery business.
In an interview, AAI Chairman Uldirico V. Brizuela said they will have to increase capital expenditures to rapidly scale-up their express delivery service through recently-organized Black Arrow Express to catch up with more established competition.
Brizuela noted that while the company has already made a name by offering a full range of logistics solutions from large size and volume shipments to storage and handling, they had put-up Black Arrow only last year.
Black Arrow is the “last mile” in the logistics solutions provision, which includes retail and courier express delivery services both as delivery and distribution for institutional marketers to consumers as well as retail express delivery for individuals; with special emphasis in technology-based logistics solutions for e-commerce fulfillment.
“This is the trend in the logistics business. Everything is now consumer driven and we need to take advantage of the strong growth potential of express delivery,” he said.
But, prior to the IPO, Brizuela said they are negotiating with a foreign company for a private equity infusion as well as a potential Filipino strategic partner that will provide synergy with their express delivery business.
Black Arrow Chief Executive Allan Brizuela said the strategic partner is a local private company that has more than 2,000 branches nationwide and wants to start a retail delivery service for its customers at the barangay level.