Kerala-based Synthite Industries ltd, with diversified interests in spices, oleoresins, flavours and hospitality, is eyeing an ambitious turnover of Rs 3,000 crore by 2020, and plans to explore the Middle East and North African markets soon.
With a portfolio of about 500 products, including spices raw, sterilised and powdered form, spice oleo-resins, organic extracts, health ingredients, essential oils, natural food colours, floral concentrates, absolutes and resinodis, the Rs 1,000-crore group is hopeful of achieving its target by 2020, Director, Viju Jacob, told PTI.
Synthite, which last year opened its first overseas plant at Korla in China's Xinjiang province, an important centre for Paprika production, would launch its new manufacturing unit in Indonesia by the end of this year, he said.
80% of revenue are from the bio-ingredients division, including Spice Oleoresins, essential oils, natural colours, organic certified extracts and beverage flavourings,
The group has six manufacturing units two in Kerala Kolenchery and Kozhikode, one each in Marudur in Coimbatore, Ongole in Andhra pradesh and Harihar in Karnataka and in China with a total combined annual capacity of 38,000 tonnes.
On the Chinese plant, he said 'We have the support of the Local government that is committed to promote agricultural and industrial projects in Xinjiang. Our employees from China run this plant.
Since we have a new plant, we expect to cater to the Chinese market from there', he said, adding all their plants are located in places where there is abundance of raw spices.
"We have to triple our turnover by 2020. We are working for it. Major share has to come from Bio-ingredients division. Keeping this in mind, we are further investing in setting up new plants and R&D Centres. The upward trend of Ready-to-cook and Ready-to-eat products' sale shows the demand growth," he said.
The group's turnover in the fiscal ending Mar 31, 2013 was Rs 960 crore, with Bio Ingredients division accounting for 80% of revenues from exports. They were targeting a sales turnover this fiscal was Rs 1,200 crore, he said.
Synthite offers a wide range of essential oils catering to specific needs of Flavour and Fragrance Industries. The group accounts for 40% of the global spice Oleoresin.
From a modest beginning in 1972, when company chairman, C V Jacob came to settle in his native village here ending his two decades long career in major civil construction projects and started Synthite Industrial Chemicals, the group has six units now and 2,000 employees and is still hiring.
Later, he shifted to extraction of spice oleoresins after he got in touch with Central Food Technology Research Institute, which helped him set up the first extraction unit here. The Company was later rechristened Synthite Industries Ltd.
The group has launched EEZEE SPICE, NatXtra, Neaox and Necol brands from Bio-ingredients, which come under B2B segment. Maggie noodles, Dark Fantasy biscuits, Crax and Haldiram snacks are among those using their blends Jacob said.
With growing consumer awareness on diet and health, the demand for products using natural colours will grow and there was a huge potential for its Necol natural colour brand, which the company would like to exploit, he said.
Last year, spice powders were launched in Kerala retail market with the brand name 'Kitchen Treasures'. New products of Masala Mixes under the same brand were launched recently. Spices division had an annual sales of Rs 100 crore last year and this year was expecting a 50% growth, he said.
Synthite has been supplying to the highly quality conscious US market for the last 40 years, besides in Europe and Asia. These markets are advanced in food processing. 'We are currently penetrating the middle-east and North African countries and the initial response is encouraging', he said.
The company was in the process of developing new flavours and was expecting an overall sales growth of 20% in the Indian market this year, he said.
Synthite has also ventured into hospitality division by running an apartment hotel --Riviera Suites at Thevara waterfront and Ramada Resorts located alongside Kumbalam Lake, both in Kochi, Dr Viju Jacob, who heads the Bio-ingredients and Hospitality divisions, said.