India-based MLM firm to invest RM10m here for a start

INDIA-based multi-level marketing (MLM) company, RMP Infotec Pte Ltd, plans to expand its operations to Malaysia and use it as a gateway to other Asian countries.

The company, which adopts binary network marketing commonly used around the world that gives large discounts benefitting consumers, would make an initial investment of RM10 million mainly for basic infrastructure and training for its members here.

The unique part of the binary network marketing is that the distributors get the maximum benefit.

It is a proven marketing partner of brand leaders in India such as National Panasonic, Tata-AIG, TVS Bikes, ICICI-Lombard, Reliance Infocom, Sterling Resorts, TCPS Computer Education, Beltek, Whirlpool, Compaq, Krypton and Videocon International.

"We are currently in the process of obtaining a licence. We hope to start operations here within a month and recruit about 400,000-500,000 members in 18 months," its chairman Pravin J Chandran said in a statement in Kuala Lumpur yesterday.

The company, established in 2000, ventured into Dubai seven months ago and has 400,000 members, bringing its total membership to 7.5 million.

"Malaysia is the preferred choice in this region to expand our business because we share the same living standards, big market and most importantly, a lot of successful MLMs such as Amway and Questnet are operating here."

"Therefore, RMP believes that we can also be successful here," said Chandran.

With the expansion into Malaysia, he said its members in India would now be able to buy Malaysian products and vice versa.

As opposed to the general negative perception about MLM companies, RMP Infotech has a very viable and sound business model that would enable it to sustain itself without making losses.

"We have the expertise compared with other MLM companies that have gone bankrupt due to a lack of people management and procurement," he said.

RMP was certified an ISO 9000 company in 2005, which means that the international standards of ISO certification are applied to the quality processes of RMP.

Apart from this, RMP recently secured the prestigious membership of the Federation of Indian Chambers of Commerce and Industry, one of India's apex industry bodies, he said. - Bernama