From the tobacco business, to airline, to liquor, real estate and education – Lucio

Tan has proven that you can always find opportunities through humble
experiences.

Lucio Tan of LT Group

Tan, known as the fourth richest man in the Philippines according to Forbes
magazine, is a well known businessman behind the country’s top brands such as
the Philippine Airlines, Asia Brewery, and Fortune Tobacco Corporation. With all
the success at his hands, Tan still manages to keep a low profile among other
billionaires in the country, something that keeps his status at the business industry
for long.

Born in China, Lucio Tan and his family moved to Naga province in the
Philippines where he was a working student. He studied Chemistry at Far Eastern
University (FEU), but quit before graduating to build his scrap business and then
eventually moved to a tobacco factory for a job.

Through this experience, in 1966, Tan started his own tobacco company which
became successful, and it introduced its own brand called ‘Hope’ in 1975. Since
then, Tan’s company became the country’s largest cigarette manufacturer. From
that, Tan began conquering success in other industries such as acquiring General
Bank (now Allied Bank), opening Asia Brewery Inc., securing control of country’s
flag carrier Philippine Airlines (PAL), and more companies under the industries of
“liquor, tobacco, aviation, banking, and real estate.”
With all of Lucio Tan’s affiliations in the country’s business industry, one can
learn many things in terms of seizing opportunities when it comes by. You don’t
need to be rich to be successful. You just need to work hard because truly, “great
things start from small beginnings.”

“Great things start from small beginnings.” This is probably one of the best
catchphrases to portray the victorious journey of self-made billionaire Lucio C.
Tan, who once worked as a janitor to put himself through college. As an individual
fueled by passion, hard work, and perseverance, Mr. Tan has become one of the
country’s richest men, with business interests spanning from banking, airline,
liquor, tobacco, real estate, and education, among others.

The now 90-year-old business tycoon was born in the province of Fujian in China
whose family moved to the Philippines in hope of better fortune when he was still
young. As the eldest among his siblings, the young Mr. Tan grew up with a heavy
responsibility on his shoulders to help provide for his family. He worked his way
through college studying Chemical Engineering at Far Eastern University in
Manila and started taking on different works to earn a living.

In one of his early jobs, Mr. Tan worked as a janitor in a cigarette factory. As the
owner saw his hard work, he was promoted as a tobacco cook, creating and
regulating the product mix, and assigned as a tobacco leaf dealer thereafter.

Using all the knowledge and experiences he acquired from his previous jobs, Mr.
Tan in 1966 opened his own cigarette company named Fortune Tobacco. It became
successful and was able to expand in the following years. In a span of just nearly
15 years, the company turned to be the largest cigarette manufacturer in the
country.

From there, Mr. Tan’s success likely continued across other industries. In 1977,
Mr. Tan acquired the General Bank and Trust Co. from the Philippine government
for only P500,000. It was later renamed as Allied Bank. After about five years, he
established and put up the Asia Brewery, Inc., the only brewery allowed to
compete with the market leader San Miguel Corp. It was able to develop
innovative products that were easily patronized by consumers.
Mr. Tan didn’t stop expanding his business ventures in the coming years. He
secured control of the country’s flag carrier Philippine Airlines and became its
chairman and chief executive officer in 1995. Among others, he also acquired
Tanduay Holdings, Philippine National Bank, Eton Properties, and the University
of the East.

In 2012, Mr. Tan consolidated his major businesses under one conglomerate
named LT Group, Inc. According to its Web site, the LT Group’s diversified
portfolio of consumer-focused businesses is well positioned to benefit from broad-
based growth in the Philippine economy.

In the previous year, the LT Group continued to gain momentum, as reflected in its
financial performance. Its attributable net profit grew by 50% to P16 billion on
higher earnings across its banking, tobacco, liquor, and property businesses. Its
revenues also went up by 19% to P75.56 billion.

“Our positive result was no accident, nor was it achieved overnight. It was the
product of years of planning, careful execution and hard work,” Mr. Tan was
quoted as saying in the group’s 2018 Annual Report.

At present, aside from being the chairman and chief executive officer of the LT
Group, Mr. Tan serves as the chairman of the Philippine Airlines, Inc.; Asia
Brewery, Inc.; Eton Properties Philippines, Inc.; MacroAsia Corp.; Fortune
Tobacco Corp.; PMFTC Inc.; Grandspan Development Corp.; Himmel Industries,
Inc.; Lucky Travel Corp.; PAL Holdings, Inc.; Air Philippines Corporation;
Tanduay Distillers, Inc.; The Charter House, Inc.; AlliedBankers Insurance Corp.;
Absolut Distillers, Inc.; Progressive Farms, Inc.; Foremost Farms, Inc.; and Basic
Holdings Corp. He also sits as a director of the Philippine National Bank.

Despite all Mr. Tan’s many achievements, he never forget to give back to the
community. As early as 1986, Mr. Tan and his siblings established the Tan Yan
Kee Foundation, Inc. (TYKFI), which was named in honor of their father Tan Yan
Kee. The companies under LT Group and other firms that are majority-owned by
the Tan family conduct most of their corporate social responsibility (CSR)
activities under the foundation.

“I am grateful that in our small way, we help narrow the gap between lack of
knowledge and a good education; between lack of medical treatment to access to
equipment and better health services; between a decaying world and a healthier
environment we can leave to the next generations,” Mr. Tan said in the group’s
Web site.

The TYKFI and its partners pursue projects that focus on four advocacies, namely
education, health services, social welfare and the environment. In the following
years, Mr. Tan assured that the foundation and its various companies will continue
its commitment to uplift the lives of Filipinos.

“As we go about our daily business, let us not forget that we have a responsibility
to our community and the less fortunate. Today, and in years past, Tan Yan Kee
Foundation, Inc. and our various companies have been investing time and
resources for projects that help uplift the lives of Filipinos. We will continue those
noble endeavors,” Mr. Tan said. — Mark Louis F. Ferrolino