LIQUA Health Corp Bhd (LHC), a multi-level marketing (MLM) company en route to a listing on the KLSE main board, plans to venture into health food farming as part of its long-term strategy to broaden its income base.
“The company is studying the possibility of venturing into health food farming in the near future.
“So far we have already identified fruit species like pitaya (also known as dragon fruit) and several herb plants found suitable for commercial cultivation here,'' said chairman Datuk Mohd Sarit Yusoh.
“This is expected to be a very lucrative venture for the group over the long term as the pitaya fruit has been found to have a high nutritional value and the demand, especially from Europe and the US, is on the rise,'' he added.
LHC, which has about RM30mil in cash reserves and is virtually debt-free even before the proposed floatation exercise, currently deals in direct selling of healthcare and household products through its distribution arm Liqua Health Marketing Sdn Bhd.
Its two core products, Liqua Health and Liqua Spirulina, account for nearly 95% of the company's annual revenue of between RM100mil and RM120mil per annum.
“We would continue to look into other opportunities that are synergistic to our existing core business,’’ Mohd Sarit said.
In May, LHC introduced its own range of water filter system Liqua A.H. Water, thus diversifying its product line to include household items.
Plans are in the pipeline to bring in exercise and relaxation equipment, and also skincare products to further complement existing business.
“Last year, total sales value in the local direct selling/MLM industry was estimated to be worth around RM3.5bil.
“We are currently doing about RM10mil a month. There is a huge growth potential for us in the industry and we believe we will be able to achieve a monthly sales value of RM20mil soon,'' Mohd Sarit said.
After seven years in the business, LHC has proven to be a profitable operating concern, chalking in profits amounting to about RM22mil last year.
The cash pile in the coffer also indicates that this is indeed one healthy company.
“The floatation exercise would give the public, especially our members and distributors, the opportunity to share the company's success.
“The majority of the shares to be made available (under the listing exercise) would go to them,'' said Mohd Sarit, who has been with the company since it was established in 1996.
LHC is targeted for a listing on the main board by October via a reverse takeover of Parit Perak Holdings Bhd. Its paid-up capital upon listing would be around RM135mil.
“We consider ourselves as one of the leading MLM companies operating in the country.
“The industry is very well regulated and has the government support as it encourages entrepreneurship development among the public,'' executive vice-chairman and advisor Fei Chong Ming said.
He added that the tight supervision by the government had spurred the growth of legitimate direct selling/MLM companies in the last few years and helped to get rid of illegal operators.
Currently there are about 400 companies involved in the industry, mostly involved in distributing cosmetics and health products.
Fei reckoned that despite the seemingly stiff competition in the local direct selling/MLM industry, growth opportunity for genuine players remained strong.
“Malaysians have high awareness about the industry and about their health needs, partly due to the frequent talks and seminars held by MLM companies,'' he said.
“MLM is a beautiful business concept. Anyone can do it.
“All it takes is the willingness to work hard,'' Mohd Sarit chipped in.
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