Meihua is the leading manufacturer of food additives in China. Their main product line is currently MSG (Mono Sodium Glutamate), and they are the largest in China. Their scale & technical knowhow together with their vertical integration offers them a competitive advantage over their nearest competitor (10% lower production cost). With vertical integration, they are also able to develop a 2nd product line by using a byproduct of the MSG manufacturing to make organic fertilizer (12% of revenue). Their future product lines also include amino acids and its derivatives for food and drug, and they are also planning to acquire other product lines such as vinegar and soy sauce.