INTRODUCTIONSynthite Industries Ltd 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, 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. 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. By 2008, it has grown to 450 crore and 1200 employees, with a 2012 goal of 1,000 crore. 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. Some of its major clients include Nestle, Bacardi and Pepsi. The company is currently run by the founder's son, Viju Jacob. 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 Its 2012 production capacity was 38,000 tonnes. To meet its expansion goals, it needs to improve access to raw materials. Increasing raw materials access means that they will need China, Sri Lanka and Indonesia for their abundant raw materials supplies. 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. HISTORY AND CHALLENGES The history of spices is deeply entwined with the history of India, manifesting itself in our food, folklore, culture and even religion. But while the story of whole spices goes way back in time, India’s tryst with value-added spice extracts began in the early 1970s. In 1972, Mr C. V. Jacob saw untapped potential in the nascent industry of spice Oleoresins and took a decision to dive in, head-first. His decision proved to be a wise one and resulted in the setting up of ‘Synthite Industrial Chemicals Pvt. Ltd.’ in Kolenchery, a village close to Cochin in Kerala, South India. Three years later, the first batch of industry certified (US FDA) Oleoresins rolled out from his Kolenchery plant. From those humble beginnings, Synthite has scaled dizzying heights today, accounting for more than 30% share in the global Oleoresins market. Synthite attributes this ability of always remaining 1|Page This was followed by the launch of Synthite’s Fragrance division in 1986. people all over the world began to develop more conscious eating habits. With its constant growth and innovation. Government of India. Synthite laid emphasis on a healthy value-system that insisted on a strong sense of morals and business ethics among all members of the Synthite family. opportunities to venture into subsidiary food flavouring avenues were identified. Synthite underwent geographical expansions too. then in Calicut. And Synthite reaped the reward of sticking to its value system. the Ministry of Commerce and Industry. Synthite’s Exports division and natural colours division or NeCol are the result of this shift of consciousness and caters to the global health requisites of the food industry. As an organisation. Besides the expansion of business. Synthite’s Oleoresins exports had hit Rs. Synthite had the opportunities for growth and expansion early on. 2|Page . Synthite had already carved a niche for itself in the Indian spice extract industry. first in Coimbatore where the Fragrance division was set up. for the production of floral concretes and absolutes. In early 2000 with the rise of the pro-environment movement. Synthite’s achievement was commemorated with a medal by the president of India. The first of these to materialise was the Herbal Isolates (P) Ltd. 1994 was a landmark year for Synthite when it became the first Indian company to obtain an ISO 9002 certification. Also Synthite responds to global consumer needs and keeping it one step ahead of the curve is the New Products Development (NPD) division. (now Synthite Calicut) as an exclusive export-oriented unit of herbal extracts. recognized Synthite as an Export House.15 crores – no ordinary milestone for an Indian company operating in the unsettled business environment of the country. Food buying decisions were no longer just about where you buy your food from. but what goes into that food. where it acquired Sijmak Oils Ltd. With a growing expertise in Oleoresins and access to some of the finest raw materials. making them the preferred ingredients provider among food and beverage industries in the world. Synthite’s transparent sourcing system and clean processing enabled it to meet the growing demands of the changing markets. In 1980. The building blocks Being early adopters of the latest equipment and keeping abreast of developments in the international spice extracts industry. More than just business As a growing company. employees and stakeholders. Launched in 1985 to manufacture essential oils and specialised spices. The fervour of liberalisation and globalisation that swept across the country during the early 90s proved to be exactly what Synthite needed to make its presence felt in the International domain. it focuses on integrity in all its relationships with customers. By 1976.one step ahead to its easy acceptance of new technology and the constant quest for better quality products and new applications for the food industry. Synthite believes in sustainable growth – Growth which is fostered through innovation that is customer-centric and earth-friendly. Synthite set up a Farm tech division that works closely with farmers to ensure the utmost quality and purity of raw materialsand meetstringent quality norms. Synthite promises its customers transparent backward integration. UK and (iii) Symega Savory Technology Pvt Ltd. Located at the state of the art Synthite Taste Park. 3|Page . Commitment to quality Synthite never takes the quality of its products for granted. Besides its production facility. Wide range of powdered and sterilised spices conform to the stringent European Commission directives for microbial load. Austria. The facility was set up for the production of Paprika Oleoresins – a product Synthite is best known for. While Synthite is recognised worldwide for its impeccable quality paprika.layered quality control system that begins right at the farming stage. As one of the early endorsers of this technology. China. It is this technical superiority. The introduction of Super Critical Fluid Technology particularly created ripples in the value added spice extracts industry. Synthite’s spice division offers whole. a joint venture with Aromco. aflatoxin and other contaminants. Synthite could offer its clients a wide range of botanical extracts of impeccable purity and customer specific precision. Synthite follows the finest practices in quality management and has a multi. the new manufacturing unit is delivering outstanding results. Synthite takes its partnership with the farming community seriously. the division is manned by a team of well-trained personnel with stellar technical and scientific expertise.In 2006. four decades of expertise and a long trusted tradition of superior product quality that makes Synthite the preferred partner to some of the biggest businesses today. the company seeks to create a more informed and aware community. pesticide residues. With advanced equipment. Delhi and Bangalore. As a core part of their business. In 2012. its advanced spice division produces and processes a variety of other value added spice extracts that are recognised as the best in class. a joint venture with Omega. Later new products of masala mixes were added to this brand. Synthite launched (i) Spice division. and providing them with the support and assistance they require. ‘Spices’ division launched spice powders in Kerala’s retail market with the brand name ‘Kitchen Treasures’. Embracing the world 2012 was the year that saw Synthite enters a new phase of its growth with the setting up of its first overseas production facility in Xinjiang. Synthite is moulding them to adapt to the multitude of challenges that the future may possess. skilled workforce and state of the art facilities. (ii) Aromco Flavour India Pvt Ltd. powdered and even processed spices that meet global food safety standards. CO2 SFE plant was launched in 2007. Synthite runs its worldwide operations out of offices in the US and China and sales offices set up in Mumbai. By understanding real world needs and problems of the farmers. Values Values are the bedrock of an organisation. 4. yet far removed from its din and bustle. Synthite is constantly improving the quality of life by improving the quality of food. Synthite owns ‘Riviera Suites’. 5. Making it a great place to work: Winning people through collaboration. it is providing the world with natural alternatives to colouring and flavouring food. Forays into hospitality lead to the setting up of eco friendly apartments and hotels that have set a benchmark in luxury living and realty. care more. we strive to find the perfect balance between individual and organizational values. 2. and grow together. Innovation: Operational excellence powered by innovation. As a part of the continuous value optimisation strategy. stakeholders and most importantly. Synthite’s ‘Ramada Resorts’ is a luxury retreat set within eight sprawling acres beside the picturesque lakes of Kumbalam. an apartment hotel in Thevara. Enhance Value: For all stakeholders. we will be the partner of choice to our clients worldwide. Cochin. The resort is conveniently close to the city. At Synthite. The hotel is built on four acres of beautifully landscaped gardens beside the Vembanadu Lake. Sustainable Growth: Grow smart. grow fast. Ramada Resort is a haven of leisure for the city-weary soul. in the outskirts of Cochin." Mission 1. amidst an ambience of absolute serenity. and a commitment to quality will take them ahead. MISSION & VALUES Vision "By consistently delivering the ingredients of success for the most exciting food. Synthite’s vision for the future of the company is simple – grow a sustainable business that honours its responsibilities toward its customers. Synthite leads in the global arena today. health and fragrance solutions. But the story that started with the lure of spices has today diversified into other areas with the same commitment to the environment. Synthite first diversified into wind energy. using unconventional energy as a power source for its manufacturing. VISION. Nestled in a picture-perfect locale. They form the basis of the behavior of its members. Customer Service: Cultivate customers. In the fight against synthetic additives. 4|Page . Its commitment to innovation and technology has brought the company this far. Recognised for its integrated solution inspired by nature and fair business practices.The Synthite difference By consistently delivering the ingredients of success. 3. to the planet. Synthite has been consistent and principled in every relationship. Lutein and Marigold 5|Page . and to the environment in which we exist. 4. as an organization and as a family. 6. And we have always expected and offered this quality in all our business transactions. 3. We lead by example. we have always given due credit to the value of fairness. our employees have moved up with us. Commitment We are accountable to the customers we serve. Essential Oils 3. instead of conditioning or enforcing. 5. And it is this value-system that defines the way we function. or our stakeholders. Synthite honours its commitments to all of the above. our employees. Fairness At Synthite. so our values become the values of our people. Be it with our clients. Innovation At Synthite. We believe in motivating and encouraging. 1. we believe that our technology combined with our acumen for innovation. PRODUCTS AND SERVICES Industrial Products 1. 2. has always helped us address even the most challenging customer requirements.As an organization. Communication At Synthite we believe open communication to be the driving force for upholding our core values at all levels for achieving our mission and realizing our vision. So. This ensures better health for our consumers and a better world to live in. Synthite has always insisted on a strong sense of business ethics and moral values. Teamwork As we moved up the ranks as an organization. we strive to achieve the highest level of scientific excellence and then innovate further to enhance the value that it provides to our final consumers. to the employees we work with. pledging to give back more than what it takes. Oleoresins 2. by improving the quality of food. This teamwork is the essence of our work culture. and works symbiotically with them. colours and flavourings with natural alternatives. Performance We are constantly looking to improve our performance and better the quality of life. We are replacing synthetic additives. 6|Page . Application Solutions Consumer Products 1. 2013 was Rs 960 crore. organic certified extracts and beverage flavourings. adding all their plants are located in places where there is abundance of raw spices. would launch its new manufacturing unit in Indonesia by the end of this year. we are further investing in setting up new plants and R&D Centres. essential oils. which last year opened its first overseas plant at Korla in China's Xinjiang province. he said. Keeping this in mind. The group accounts for 40% of the global spice Oleoresin.000 tonnes. They have to triple our turnover by 2020. Ongole in Andhra pradesh and Harihar in Karnataka and in China with a total combined annual capacity of 38. The group has six manufacturing units two in Kerala Kolenchery and Kozhikode. Analytic Solutions 2. one each in Marudur in Coimbatore. On the Chinese plant. Our employees from China run this plant. Sensory Solutions 3. natural colours. 4. an important centre for Paprika production. We are working for it.Synthite offers a wide range of essential oils catering to specific needs of Flavour and Fragrance Industries. NatXtra THE FINANCIAL GROWTH Synthite. with Bio Ingredients division accounting for 80% of revenues from exports. Sprig 2. Kitchen Treasures 3. They were targeting a sales turnover this fiscal was Rs 1. Herbal Extracts 6. The group's turnover in the fiscal ending Mar 31. Tea & Coffee Extracts Industrial Services 1. The upward trend of Ready-to-cook and Ready-to-eat products' sale shows the demand growth. Green Spice Extracts 5. he said 'We have the support of the Local government that is committed to promote agricultural and industrial projects in Xinjiang. including Spice Oleoresins. 80% of revenue are from the bio-ingredients division. Since we have a new plant. Major share has to come from Bio-ingredients division.200 crore. we expect to cater to the Chinese market from there'. the demand for products using natural colours will grow and there was a huge potential for its Necol natural colour brand. which come under B2B segment. Dark Fantasy biscuits. Neaox and Necol brands from Bio- ingredients. These markets are advanced in food processing. both in Kochi. which helped him set up the first extraction unit here. The Company was later rechristened Synthite Industries Ltd. 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. Maggie noodles. 'We are currently penetrating the middle-east and North African countries and the initial response is encouraging. 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. Crax and Haldiram snacks are among those using their blends. Synthite has been supplying to the highly quality conscious US market for the last 40 years. Synthite has also ventured into hospitality division by running an apartment hotel --Riviera Suites at Thevara waterfront and Ramada Resorts located alongside Kumbalam Lake. With growing consumer awareness on diet and health. New products of Masala Mixes under the same brand were launched recently. besides in Europe and Asia. which the company would like to exploit. Dr Viju Jacob. who heads the Bio-ingredients and Hospitality divisions 7|Page . shifted to extraction of spice oleoresins after he got in touch with Central Food Technology Research Institute. The group has launched EEZEE SPICE. spice powders were launched in Kerala retail market with the brand name 'Kitchen Treasures'. NatXtra. Last year. From a modest beginning in 1972. the group has six units now and 2. Spices division had an annual sales of Rs 100 crore last year and this year was expecting a 50% growth.000 employees and is still hiring. Later.