Built to last: Conglomerates adapt to stay on top

MANILA, Philippines — Some companies view innovation as the key to success, constantly reinventing the wheel to stay ahead. Others, however, choose to stick to their roots, keeping their tried and tested formula to navigate an ever-evolving business landscape.

But for some of the country’s largest and most successful conglomerates, striking a balance between innovation and tradition is seen as vital to sustaining growth and maintaining relevance in the years to come.

While retaining their DNA, companies like SM, Ayala, LT Group and Alliance Global have also infused young blood and ushered in a new set of leaders to play a key role in their next phases of growth.

Lucio Tan III and Zobel

Carrying on the Sy legacy

Jessica Sy, daughter of Henry Sy Jr., is emerging as a key figure behind the SM Group’s property business.

The third-generation Sy is currently vice president and head of design, innovation and strategy at the group’s integrated property development arm SM Prime.

Regarded as a trailblazer in urban development, Jessica is reimagining urban living with thoughtful design, sustainability and a lasting sense of community.

“We want to carry stories that surpass generations, that can be passed on to our children and our children’s children. Where memories are made and futures are built,” she said.

As part of this vision, SM Prime is expanding into the premium residential market, a natural progression given the company’s extensive experience in creating upscale environments through its mall developments, office buildings, hotels and leisure properties.

“We are stepping into something new, but not unfamiliar. If you trace our journey, our legacy, the integrated communities  we have built, the spaces  we have shaped and the millions of lives of Filipinos who worked and connect with our developments, this moment feels like a leap. Not just a leap, but a natural evolution,” Jessica said.

“We’ve spent decades looking into our developments and seeing how we can develop better communities. We’ve understood people, we’ve studied and we believe that we are ready. We’ve curated experiences at every level and now we find ourselves in a position where we are no longer asking, can we do this? But rather, why should we wait any longer?” she added.

Jessica said  the move to venture into the premium residential segment is not just a reaction to a changing market, but  a plan the group has had for many years.

“It’s a result of years of planning, listening, watching, waiting and being ready,” Jessica said, adding that “we believe our customers are changing and deserving. They are looking for new, but they are no longer just impressed with shiny new objects. Rather, they are drawn to spaces where they can feel that they can be themselves. And that is what we aim to achieve with our new brand.”

In addition, Jessica said the new venture forms part of the SM Group’s vision of upholding its duty to build upon what Filipinos deserve.

“This is in line with the SM Group’s commitment to raising the standards of living and what it means to live well, not just for today, but as our commitment for decades to come,” she said.

“Because it’s not about entering a new category – it’s about creating a standard. One about building homes that speak less to status and more to our souls. And we believe this story is worth telling,” she added.

Ayala’s next-gen leaders making waves

For Ayala, the country’s oldest conglomerate, its next generation of leaders have started to play a more pivotal role in the group’s evolution.

Four of the group’s young executives – Jaime Alfonso Zobel de Ayala, Mariana Beatriz Zobel de Ayala, Jaime Urquijo and Mark Robert Uy – have taken on bigger roles for the group.

Uy, in particular, is leading the continued transformation of the group’s portfolio of businesses, with the aim of being more concentrated and more valuable yet still diversified.

“It’s really implementing the vision of JAZA (Jaime Augusto Zobel de Ayala) and Bong (Cezar Consing). But at the same time, the Gen 8 (eighth-generation of the Zobel family) is also starting to become more active, particularly the three,” Uy, head of corporate strategy and business development at Ayala, Uy said.

“The three have very strong views on how they want things to be. Part of that was the rebrand of our purpose statement. In the past, it used to be for the greater good. They changed our purpose to building businesses that enable people to thrive. It feels a little bit more concrete, a little bit more actionable,” he added.

Mariana is currently leading the transformation of Ayala Land Inc.’s leasing business across its retail, hospitality and office pillars,  while Jaime Alfonso is playing a leading role in upholding and raising the group’s standards for excellent governance, while also accelerating the growth of Ayala’s new energy vehicle platform, ACMobility.

Urquijo, for his part, is leading the internal transformation of the holding company Ayala as it seeks to add more value to the group as a whole.

“With the Gen 8 becoming more involved, they are always looking to raise the bar. When you look at our aspiration, if we say we believe in building businesses that enable people to thrive, what exactly does that mean? Because thriving goes beyond mere survival.  To thrive means to live with dignity, give people hope, aspiration for a better future, and more choices. But that means we need to know our lane and stick to that lane,” Uy said.

“It’s really refocusing the business, whether that’s Ayala Land, BPI, Globe, ACEN. It’s back to basics and back to our focus. What that allows us now is to identify the pain points we are seeing in the market and say, could we make a difference there? Could we do things significantly better than the incumbents in those spaces?” he added.

As one of the largest conglomerates in the country, Ayala has investments in various sectors such as real estate, banking, telecommunications and renewable energy.

It likewise has a growing presence in health care, mobility and logistics as well as investments in industrial technologies, education and other ventures.

For the group, Uy said that Ayala’s focus moving forward is the people that its various companies serve.

“That’s the journey that we’ve been doing the last two years, refining that purpose, refining that strategy, refining what it is that we want to do and say no to hundred different things so we can say yes to that one thing that actually moves the needle for our customers, employees, shareholders and the community,” Uy said.

“So even within our respective businesses, we are re-examining where we are good at and where we are contributing. Because if we don’t contribute in that space, then maybe we are just crowding out other people from succeeding,” he said.

New captain on board

Since taking on the role as LT Group’s president in 2023, Lucio Tan III – grandson of taipan Lucio Tan – has successfully steered the company toward strong financial performance while reinforcing its leadership position across key industries.

Under his leadership, LTG has set a clear vision and a strong determination to propel progress beyond boundaries through innovation, operational excellence and a focus on long-term sustainability.

“Our journey as a diversified conglomerate began in 2012 when we expanded our investment scope beyond distilled spirits to include key industries such as tobacco, banking, beverages and property development,” Tan III said.

“This strategic evolution positioned LTG for sustained growth and market leadership, enabling us to navigate an ever-changing economic environment with agility and foresight,” he said.

With LTG building on its strong foundation, Tan III said the group achieved a record-breaking year in 2024, its strongest financial performance to date.

“This achievement underscores our resilience and strategic adaptability amid shifting market dynamics. Our businesses continue to generate significant shareholder value, driven by the strong performance of our key subsidiaries,” he said.

Like father, like son

Kevin Tan, who took over as president of Alliance Global Group in 2024, has further cemented the group’s reputation as the country’s premium lifestyle conglomerate under his leadership.

In an era defined by rapid urbanization, evolving demographics and the global mandate for sustainability, Alliance Global Group is responding by creating not mere structures and developments, but complete communities and lifestyle.

To cement its position as the country’s premium lifestyle conglomerate, the group is raising every aspect of its products and services to meet global standards – while staying true to its distinctly Filipino roots.

Kevin, the eldest son of tycoon Andrew Tan, said that Alliance Global Group’s expansion strategy in the coming years is comprehensive.

“Beyond individual investments, our plans to grow townships, office and mall gross leasable area, hotel room keys, MICE venues, integrated resorts, premium spirit brands and quick service restaurants reflect an integrated approach to sustainable development,” he said.

“These initiatives diversify revenue streams, strengthen urban ecosystems and enhance community well-being,” he added.

Kevin said the group’s strong financial performance, combined with bold capital commitments, underscores its dedication to excellence, innovation and long-term stakeholder value, while advancing environmental stewardship and social impact.

“As we move into 2025 and beyond, we remain focused on financial discipline, unlocking new value and strengthening our competitive position in an evolving global market,” he said.