An inventive approach in the natural health product industry has made Auckland-based GMP Pharmaceuticals the largest contract manufacturer of supplements in New Zealand and a fast-growing force in the health-conscious Asian market.
Focusing on the global natural health product market, GMP has almost doubled its annual export earnings in the last two years, to become a $30 million company.
GMP chief executive Minesh Patel says the company’s success has been established by providing a “one stop shop” to people wanting to retail their natural supplements – with GMP offering among its services R&D, manufacture and distribution.
The engagement with the client can reach well beyond simply manufacturing – from development of the product, to support in design and development of packaging, product and IP registration, distribution, product launches and retail display in international markets.
“Our business is different – others are order-to-order, but we look at the long term. We want to help these clients to succeed, as our success is theirs,” Mr Patel says.
“As the biggest contract manufacturer of supplements in New Zealand, we not only employ 125 people, but so many small companies depend on us. Then there are the suppliers who make the raw materials for us. We are a $30 million company, but our ultimate contribution to the natural product industry is around $80 million, in my estimations.”
The company has grown substantially in both revenue and size since it began in 2002. “When we started, we wondered if we were too big for the New Zealand market, and if we were taking a risk setting up such a big factory. Two years later, our factory wasn’t big enough, so we built another premises, investing $2.5 million,” Mr Patel says.
“When I joined the company in 2004, we had 10 people; now we have 125. Back then, we were so happy to have an order – now we have a backlog of two months to supply to a customer.”
GMP Pharmaceuticals saw there was a gap in the market, where small companies with ideas for natural health products weren’t being supported.
“We decided to help the small people develop their ideas, manufacture them, and help them to become big brands in China and Korea,” Mr Patel says.
GMP has also created an opportunity for their New Zealand clients to enter the Chinese market, setting up AUNEW – a unique “one-stop export to China” service, to handle the export logistics for nutraceuticals, functional food, wines, and skin care.
“We had so many customers with a good name in the New Zealand market, very quality conscious companies, who didn’t have a presence in China. There are a lot of problems to overcome – getting the right partner, the right regulations, and logistical issues. We have the background in China, and we’re able to help,” says Mr Patel.
“People in China, Hong Kong and Korea are better educated about their health today, and they’re really crazy about New Zealand. The New Zealand brand is very important in the supplement industry – our clean, green image, highly regulated product, and people delivering quality.”
GMP is on the verge of expanding into a new product area – infant formula for the Chinese market. The company bought the factory next door to their current East Tamaki plant, and expects to soon be exporting 20 million cans of formula a year, predicting $200 million in revenues from the venture.
Mr Patel pins some of the company’s international success on the support it has received from New Zealand Trade and Enterprise and advice from TechNZ.
“Going through the New Zealand International Business Awards programme has provided an opportunity for us to see how process works, hear from the judges, and help us analyse our company.”
Judges’ commendation
“GMP Pharmaceuticals’ approach to international business exhibits a high degree of innovation. It has moved beyond wholesale manufacturing of pharmaceutical products to become intimately involved in its clients’ business by advising them on aspects such as initial concepts, packaging, and distribution. This makes it a one-stop shop and as a result it is helping many companies – including other New Zealand firms – successfully enter the Chinese market.”
For more information contact:
New Zealand Trade and Enterprise
Anna McIntyre, phone +64 4 816 8317, email anna.mcintyre@nzte.govt.nz
GMP Pharmaceuticals
Minesh Patel, phone +64 9 272 1111 (ext 111), email minesh@gmp.net.nz
