A.

Reasons behind their "not so" related diversification from "hard" industries

(construction, steel manufacturing and electrification) to "soft" industries like

education, hotels, etc.

Founded by Ambassador Ramon V. del Rosario, Sr., Don Filemon Rodriguez,

and Mr. Ernesto Escaler, Philippine Investment-Management (PHINMA), formerly

known as Bacnotan Cement Industries, Inc. (BCII), was incorporated on March 12, 1957

(Philippine Investment-Management, 2021). Since then, it has held investments on

various activities involving education, construction materials, property, and hospitality. It

also has shares in various subsidiaries, associates and investees and other financial

instruments. Thanks to its extensive distribution network ranging from construction to

educational institutions, PHINMA continues to build the nation through well-managed

and profitable enterprises that cater to market needs.

PHINMA is structured into four strategic business units: (1) Construction

Materials, (2) Education, (3) Property, and (4) Hospitality (Philippine Investment-

Management, 2021). PHINMA's Construction Materials Group was established with the

goal of leveraging synergies among the group's various companies to provide

innovative construction solutions to its customers, offering one-stop shop services from

floor to roofing to customers nationwide. PHINMA Education Holdings, Inc. (PHINMA

Education), on the other hand, has interest in a number of institutions that provide high-

quality basic and higher education to learners from low-to-middle-income households in

developing metropolitan areas. PHINMA Property Holdings Corporation (PPHC)

pioneered the Medium Rise Building (MRB) for the low-income market, concentrating on

This study source was downloaded by 100000811693054 from CourseHero.com on 09-16-2022 07:12:46 GMT -05:00

https://www.coursehero.com/file/117871597/Reasons-behind-their-not-so-related-diversification-from-hard-industries-construction-steel-ma/
 establishing affordable medium-rise housing in Metro Manila, Davao City, Cebu City,

and Batangas. PHINMA Hospitality, which owns equity in several hotel chains locally

and internationally, wants to target local and international tourists and guests through

strong institutional relationships and business collaborations.

Those being said, PHINMA considers the following to be its key strength:

Multigenerational Management Expertise Across Multiple Sector Industries, Strategic

Cross-Business Synergies, Broad Distribution Network with Flexible and Cost-Effective

Supply Chain, Superior Product and Growing Brand Reputation, Sustainable and

Integrated Expansion of the Educational Services Business, and Strong Talent

Management (Philippine Investment-Management, 2021). The key to PHINMA's

unusual diversification is that PHINMA believes that by implementing this strategy, they

will be able to: strengthen their various businesses through their structured portfolio

approach, and impart strong parent support and excellent financial management that

will support growth opportunities, risk management, and sustainability.

PHINMA may be diverse in terms of services they offer, but in terms of the

relativity of their businesses we can say that they are interrelated. With construction as

its first endeavor, PHINMA then continued to hold equities in sectors that would, in some

way, require the services of construction.

Philippine Investment-Management. (2021). Preliminary prospectus.

This study source was downloaded by 100000811693054 from CourseHero.com on 09-16-2022 07:12:46 GMT -05:00

https://www.coursehero.com/file/117871597/Reasons-behind-their-not-so-related-diversification-from-hard-industries-construction-steel-ma/
Powered by TCPDF (www.tcpdf.org)