The 50-50 JV will leverage on Parry Nutra's Spirulina cultivation strengths and Synthite's extraction capabilities making it a good strategic fit for both the partners.
The joint venture will set up a manufacturing facility in Tamil Nadu at an investment of about Rs 400 million (Rs 40 crore) for the production of Phycocyanin, a natural blue pigment extracted from Spirulina.
Phycocyanin is a complex of light-harvesting proteins, extracted from Spirulina, which has a characteristic deep blue colour. Phycocyanin offers excellent stability and flexibility for application in a variety of food and beverages and is approved by all major regulatory bodies in the US, EU, Japan and South Korea as food colour.
Aju Jacob, Director, Synthite Industries said, "Our leading-edge technology will allow us to qualify our product as a natural 'colouring food' for European markets and as a certified organic product for the US market. We will also explore emerging opportunities in algae extracts for the global health and wellness industry."
Muthu Murugappan, Business Head of Parry Nutraceuticals said, "To start with, we will be focusing on extracting Phycocyanin from Spirulina. In due course, we will be looking at other avenues within the microalgae segment thereby building the business to a company with a diversified value-added Algae portfolio."