KOCHI, Oct 12: Synthite, the world’s largest producer of value added spices, is strengthening its presence in the US and China and tapping Latin American markets as it targets a 33 per cent growth in revenue to Rs 1,600 crore this fiscal.
The Kolenchery headquartered group, which registered Rs 1,200 crore turnover last financial year, controls 45 per cent of world market in spice oleoresins, Viju Jacob, Deputy Managing Director, Synthite Industries Ltd, told PTI in an interview.
It is eyeing a total turnover of Rs 1,600 crore this year.
The company’s turnover from spice business, which includes oleoresins, was about Rs 730 crore last year and China, US and European markets, including Germany, Italy and UK accounted for about 85 per cent of the total revenues.
This year, the company was expecting the turnover to touch Rs 800 crore, a 10-12 per cent growth from these markets.
Spice oleoresins are the natural essence that binds both taste and aroma of the spices in the most concentrated form. These isolates serve as convenient substitutes for raw spices in processed food products.
“China for us is an unexplored market with a great potential for flavour ingredients and spice flavours. We can introduce new ingredients to Chinese food and flavour industry and it is a much larger market. The domestic market in China is much larger than India,” he said.
Seeing the opportunity, Synthite had put up a manufacturing plant three years ago at Xinjiang province in China with a production capacity of 550 tonnes per annum of Paprika oleoresins. The products are exported from the unit.
For the Chinese domestic market, synthite is manufacturing pungent chilli extracts which is used in the local food. “This product is being produced in our modern plant at Ongole in Andhra Pradesh. It will be exported to China and the product will be further standardised to suit chinese taste for various applications,” he said.
On the US market, Jacob said, it is one of the largest consumers of black pepper and black pepper whole and its various value added products are exported there.
“We are now building up our local presence in the US market in Chicago by setting up warehousing facility, sales offices and a sales team,” he said.
The company has also opened a marketing office in Brazil to improve the South American business opportunities and will also be exploring new untouched global markets.
Jacob said the government needs to make changes in the Food Safety and Standards Authority of India (FSSAI) Act and some relaxations in import regulations to help the Indian food industry to grow. (PTI)
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