Synthite Industrial Chemicals

Synthite Industries Ltd (Synthite) is an Indian oleoresin extraction firm, supplying ingredients to the major food, fragrance and flavour houses. The company is based in Kochi. In 2008, it had 30% of the world's market share,.[1][2]

The company was established in 1972 with 20 employees. It was founded by C.V. Jacob, who started the company after working in civil construction for two decades. Initially it produced industrial chemicals before shifting to oleoresins.[3] The oleoresin business was initially based on research by the Central Food Technological Research Institute in Mysore. However, the technology developed was not yet mature, and it took several years of additional research and development by Synthite to make the technology viable. It took another four years before they convinced food producers that they could produce quality products on time.[2]

By 2008, it has grown to 450 crore and 1200 employees, with a 2012 goal of 1,000 crore.[1] The company achieved this goal, with a total of 2,000 employees. The company only began selling directly to consumers in its native India in 2014.[4] Some of its major clients include Nestle, Bacardi and Pepsi.[4] The company is currently run by the founder's son, Viju Jacob.[5]

The company produces oleoresin spices, essential oils, food colors, and sprayed products. It also has products that are organic and fair-trade. The company also has investments in realty and hospitality.[1]

Its 2012 production capacity was 38,000 tonnes.[3] To meet its expansion goals, it needs to improve access to raw materials.[2] Increasing raw materials access means that they will need China, Sri Lanka and Indonesia for their abundant raw materials supplies.[6] In particular the company is focused on developing its paprika processing investment in Hejing County, China established in 2012 as pivotal to rapid revenue growth.[2]

Some observers quoted by Outlook an Indian magazine feel that the company has over-invested in capacity, increasing their costs.[2]

References

  1. 1 2 3 "Synthite group targets Rs. 1,000 crore revenue". The Hindu. December 21, 2008. Retrieved February 17, 2015.
  2. 1 2 3 4 5 Mathai, Adit (July 20, 2013). "Spice ManKerala-based flavouring company Synthite is banking on its Chinese expansion to triple revenues by 2020". Outlook Business.
  3. 1 2 "Synthite eyeing Rs 3,000 cr turnover by 2020". Business Standard. July 29, 2013. Retrieved February 17, 2015.
  4. 1 2 Zacharia, Reeba (June 18, 2014). "Spice exporter Synthite plans domestic market entry". The Times of India. Retrieved February 17, 2015.
  5. ↑ "Synthite to strengthen operations in Chinese and US markets". The Economic Times of India. October 12, 2014. Retrieved February 17, 2015.
  6. ↑ Industrial Economist. 33. S. Viswanathan. 2000. pp. 230–. Kerala based Synthite Industrial Chemicals Ltd a large exporter of spices oleoresins has launched its various products into the Chinese market directly. Dr K V Balakrishnan, general manager said that their products were earlier being sold ...
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