Diamond IGB in P300-M expansion

Filipino firm Diamond IGB Inc. is embarking on an aggressive expansion program starting this year to increase the company’s fleet for its rent-a-car business to 1,000 units and at the same time begin its foray abroad. In doing this, Quincy Buenaflor, Diamond IGB business development manager, told reporters that they would need to drop its vehicle rental franchising and licensing agreement with global giant Budget Rent-A-Car and revert to its old name Diamond Rent-A-Car. Buenaflor said the agreement with Budget does not allow them to open business in areas outside of the Philippines. To fuel its expansion binge, Buenaflor said Diamond IGB will be investing P300 million covering eight projects that would support its Diamond Rent-A-Car business and increase its revenues to P220 million in 2008. The vehicle rental is 80 percent of Diamond IGB’s business, with the rest being the Diamond Fleet Management System, Buenaflor Insurance and Pronto Auto Services. Also included in the expansion program are the addition of Pronto outlets in Makati and Quezon City and the establishment of the Pronto Car sales on a 2,000-square meter lot on South Super Highway that will serve as the country’s disposal unit for its old vehicles. For its international expansion, Buenaflor said they will start in Micronesia to cater to its two million tourists arriving yearly. The company acquired a licensing agreement with Budget in 1998 so it used the name Budget Car and Truck Rental since then up to April 2006 and dropped Diamond Rent-A-Car, which opened shop in 1977. About 85 percent of IGB’s rental business is from its corporate clients and the rest are for walk-in and tourists. This year, Buenaflor said they expect the tourism segment to pick up, especially for its units in Cebu and Davao. “The tourism in Cebu is amazing. We have a lot of Japanese and Korean clients there," he said. - GMANews.TV