Author Topic: Radiowealth  (Read 15139 times)


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« on: October 27, 2009, 08:03:08 AM »

Radiowealth Finance Company, Inc. is a finance company whose primary purpose is to engage in consumer and retail lending by providing accessible credit to livelihood projects and to the micro-enterprise sector. It ranks among the top 10 financing companies in the Philippines in terms of both total assets and net income.

It has 65 branches strategically located nationwide covering a total of 978 cities and municipalities. It has also served over 100 thousand Filipino OFWs in Hong Kong through its subsidiary RFC-HONGKONG, LTD. Since 1993.

Incorporated in May, 1964, it presently has a certificate of authority to operate as a finance company from the Securities and Exchange Commission granted on March 25, 1996.

Since its inception, Radiowealth Finance Company, Inc. has established an extensive and gainful presence in the market. It is an industry leader in terms of collection efficiency on receivables. Its 82% average collection efficiency (with some branches attaining 98%) attained through sound and responsive credit management and its aggressive marketing efforts continue to propel the company's advancement. Its low delinquency ratio (non-performing loans ratio) of 6.8% of loan portfolio vis a vis the banking and financing industry average of 7.8% is a tribute to management expertise built around years of experience in the industry.

Its thrust at micro-lending is exemplified by its average loan size of Pesos 89,000 to more than 14,000 borrowers.

In 1995, a corporate restructuring came into effect wherein the Guevara family, being the majority shareholders of Radiowealth Finance Company, Inc., then listed with the Philippine Stock Exchange, opted to sell the said listing of the company with the provision however that the corporate name would be retained by the Guevara family. Its track record in the business industry as Radiowealth Finance Company, Inc. remained unaltered as financing activities continued and expanded.

Radiowealth Finance Company, Inc. is a member of the Guevent Group of Companies (GGC) which is the consummation of a single man's pioneering life work, that of the visionary Domingo M. Guevara. To date, majority and controlling ownership of Radiowealth Finance Company, Inc. is held by the Guevara family and affiliate/member companies.


Where economic nationalism is, the call to patronize Philippine-made products should be loudest. This belief is exemplified by the government's continued pledge to bring local goods to the fore.

Since the Commonwealth era, every president who sat at the helm of Philippine government has sought to uplift national industry by promoting locally manufactured goods. The catchphrase “buy Filipino” was first heard under the Commonwealth government of Manuel Roxas in 1946, following the birth of the National Economic Protectionism Association (NEPA) movement.

Still in support of this, succeeding president Ramon Magsaysay was very expressive about his unwavering faith in Filipinos in their ability to progress under their leadership, management and initiative.

When Mr. Magsaysay died in 1957, the promotion of local goods was carried on by his successor, then Vice President Carlos P. Garcia. President Garcia made the "Filipino First Policy" one of his flagship programs.

The succeeding administrations, until now, have included the revival of this program in their respective economic agenda. However, it would seem that centuries of colonial rule, which urged most Filipinos to develop a liking for foreign goods, could not easily be dismissed by decades of product promotion, especially in light of globalization.

There was a time, however, when domestic products almost rose beyond the reach of foreign competition, if not for the growth arresting interference of politics. In the 1950's, the country was on the verge of becoming the first "tiger economy" in Southeast Asia. At this time, the late Domingo M. Guevara figured prominently in the local business scene, being one of the entrepreneurs who helped the Philippines in reaching the status of a newly industrialized country.

D.M. Guevara is said to personify the Filipino entrepreneur, industrialist and businessman that then President Magsaysay urged Filipino to become.

A native Bicol province, he braved the course of progressive development in the manufacturing sector by coming out with enterprises that ranged from simpler lines of production to the more complicated. His flagship company, electronics firm Radiowealth, Inc., started as a small radio repair shop in 1930.

The late entrepreneur certainly knew his way around the electronic business. His eldest brother Jose, was the proud owner of the very first radio unit that Bicol ever set its eyes on. D.M. Guevara had openly attributed Bicol's radio culture to his brother, who he regarded as his "idol", Jose, unfortunately, died of tuberculosis when he was only 23 years old. Before his demise, he bid his younger brother to take up studies on radio repair and maintenance.

This is why, at age 16, D.M. Guevara began traveling to Manila to watch radio technicians do their work. During his spare time when he got tired of sightseeing around the city - he buried his nose on radio manuals to master the craft.

From a small repair shop in 1930, his business grew to eventually cover the radio dealership. Later on, it ventured into importation and selling radio sets. Radiowealth also sold communications equipment such as transmitter and telegraphic keys on the side and its clientele included the Bureau of Posts and the United States Armed Forces in the Philippines.

By 1951, the company was already assembling its own radio sets, with one of its products being the Claire de Lune, the local stereo famous for its distinct cabinet-type shell. This knack for quality electronic products merited the company honor and recognition and, in 1954, Radiowealth became the recipient of the "Electronics Firm of the year" award of the business Writers Association of the Philippines. Buoyed by this major feat, the company pioneered in the manufacture of television sets a year later.

D.M. Guevara's second son, Reynaldo, attributes Radiowealth's success to the ability to meet customer satisfaction. "Dad had many satisfied customers. That became the strength," he said. Reynaldo Guevara is now Chairman of Guevent Industrial Development Corp., which is presently the holding company of the Guevara Group of companies.

The expansion that Radiowealth embarked on in the mid-50s did not stop at manufacturing radio and TV sets. Radiowealth continued to cover a larger spectrum of the electronics business, branching out to manufacture other households appliances such as air conditioners, electric fans, and lawnmowers from 1958 to 1959.


By 1960, Radiowealth had already manufactured the first locally produced TV picture tubes. Also in this year, D.M. Guevara formed automotive company DMG, Inc. which was introduced to Filipino motorists.

And the list of electronics and automotive-related products under the Guevara management grew. Even as the businessman strived hard to make his companies creditworthy, he also became active in politics. He ran for election as delegate to the 1971 Constitutional Convention, motivated by a vision to create a more conducive environment for heavy industry and enterprise. The bills he proposed focused on protecting the interest of domestic enterprises through tariff protection. He ardently supported resolutions

that called for bringing wholesale business to national level and prohibiting importation of luxury products and exportation of raw materials that could be use in processing local goods. He was also a member and past president of NEPA, which over the years pursued its commitment to protect Filipino industries and factories. He was even one of the famous seven delegates who openly declined to sign the Martial Rule Constitution.

In a foreword to D.M. Guevara's biography (written by Nick Joaquin and published in 1993), friend and erstwhile business associate Dominador Aytona said that throughout the businessman's career, "I saw him overcome inertia and resistance to change, exert the drive which defied regulation in attitudes to production of consumer durable goods…. He (had) a social conscience and (had) been an advocate of social justice. For he fought abuses of economic strength in order to close the gap between the powerful and powerless, between big business and small business, and between rich and poor, and in order to prevent domination of the economy by a few corporations… Above all, he (was) patriotic and a nationalist. For he (was) for the judicious use of scarce resources through the tariff mechanism, as well as for selective import and exchange restrictions, in order to develop a self-reliant and independent national economy effectively controlled by filipinos."

"Until philosophers rule as kings or those who are now called kings and leading men genuinely and adequately philosophies, that is, until political power and philosophy entirely coincide, while the many natures who at present pursue either one exclusively are forcibly prevented from doing so, cities will have no rest from evils,... nor, I think, will the human race." - Plato

"Only the dead have seen the end of war." -Plato



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Re: Radiowealth
« Reply #1 on: October 27, 2009, 11:13:20 AM »
Radiowealth could have been our "Samsung" or "Daewoo'. But...sigh...

Failure Analysis

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Re: Radiowealth
« Reply #2 on: October 27, 2009, 11:22:10 PM »
Guevarra delved in politics because he believed in big government, rather than on market forces and economic competition, as the prime enabler of local manufacturing survivability.

This attitude reflected in how Radiowealth was run. Instead of adapting to the fast pace of technological change (represented mainly by the new Japanese products), he emulated the Americans and chose to rely on regulation and market sentimentality for survival.

Arguably, the story could have been different had they chose to focus on electronics. They even tried broadcasting in the mid-60s.
"Ask yourself whether the dream of heaven and greatness should be waiting for us in our graves - or whether it should be ours here and now and on this earth." Ayn Rand (1905–1982)