KEY INTERVIEW: Synthite Commits to Local Spice Ingredients Processing With Backward Integration
15 Dec 2015 --- Synthite was among the first in India to enter into the nascent field of spice oleoresin manufacturing. Today, Synthite has become the global leader in spice oleoresins and other plant-derived natural product solutions with a turnover of over US$225 million; commanding over 30% share of the global market. Director Aju Jacob explained to FoodIngredientsFirst how Synthite is making its way from a commodity player to the supermarket shelf.
When Aju Jacob joined the family business in 1987, he knew that he was starting with a robust business built on a solid foundation. The initial efforts to drive process improvement and introduce production efficiencies contributed to the growth during mid-90s, and when Synthite upscaled production of paprika to overtake that of Spanish production and also started establishing a firm business in flavor, fragrance and seasoning business worldwide, Jacob knew that the company’s direction was set.
“By the mid-1990s we expanded our product profile. We also found, around that time, that being close to the source of the product made us more competitive when it came to time and being close for processing purposes. It allowed us to introduce more automated processes,” explained Jacob. “By initiating a process of backward integration, in which we had control over the seeds and raw materials, we became in a better position,” he says. Synthite’s Farm tech Division enables farmers to produce high quality products that meet international quality standards through training on various aspects like best practices in farming, environmental issues, integrated pest management system (IPM) etc. “When China started to dominate around 2011, we immediately established a facility there for extraction of paprika and also introduced newer technologies in extraction and grinding,” says Jacob.
As the market opened up and became more international, Synthite also paid attention to new technologies that would not only bring processing efficiencies, but also keep up with trends, particularly in the area of natural foods and ingredients. The latest technology that allows extraction using CO2 is being used for a variety of products now. It also developed technologies for isolation of active ingredients using mechanical process. The modern technologies, state of art manufacturing facilities, precision instruments and passionate people ensure value delivery. Synthite is working towards products differentiation compared to its peers and is investing heavily on people and R&D in developing clean label and green technology products. “The global trend in the food sector is moving towards natural and that of vegetable origin. We do see a great opportunity here,” Jacob says.
“The world is looking for natural alternatives,” says Jacob. “In terms of food colorings, a leading region such as Europe is now 50-70% natural, with the rest of the world catching up. We are in a position to pursue all levels of non-solvent processing such as mechanical and CO2 extraction to cater for the trend for clean label that increasingly, even large multiple retailers are demanding.”
According to Jacob, around 5-10% of the global food ingredients market is now clean label and Synthite’s processes ensure that it is well-placed to keep up with the trend. Jacob also reiterates that not all its ingredients products are being used as ingredients for taste. “Many of our products are used as colors, feed and even antioxidant solutions.”
As well as being a global business, Synthite is, of course, still an Indian company with Indian customers at its heart. The company is also making its way into the retail market in India with its own brand Kitchen Treasures and Sprig. According to Jacob, the company is improving its local presence in order to get closer to its customers.
With all these developments in technology, consumer demands and international expansion, the future is looking very busy for Jacob. As such, he is focusing his efforts on a few key areas. “In the future we will be strengthening our backwards integration to provide better control over up to 40% of our raw materials,” he said. “This means ensuring better quality seeds and maintaining farming practices. By being local to the farming community and establishing a base close to where the crop is grown, we are showing a commitment to them and this is good for confidence as well as sustainability.”
With regard to sites in Europe, Brazil, the US and Indonesia, Jacob feels they show the same commitment to the local area. “We are improving our local presence in order to get closer to our customers. This also improves our competitiveness as we are on-site when required.”
And as far as new product development is concerned, it’s business as usual at Synthite. “There will always be a focus on new technologies and we will monitor them closely to see how they develop. Synthite has elevated itself to a solutions provider to the food, fragrance and feed industry, leveraging on its unparalleled industry acumen. Synthite has established a state-of-art New Product Development and Research Centre, which has facilities to host customer teams for collaborative product development.”
By Kelly Worgan
