INTRODUCTION

Synthite 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

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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.
The building blocks
Being early adopters of the latest equipment and keeping abreast of developments in the
international spice extracts industry; Synthite had the opportunities for growth and expansion early
on. By 1976, Synthite’s Oleoresins exports had hit Rs.15 crores – no ordinary milestone for an
Indian company operating in the unsettled business environment of the country. Synthite’s
achievement was commemorated with a medal by the president of India. In 1980, the Ministry of
Commerce and Industry, Government of India, recognized Synthite as an Export House.
With a growing expertise in Oleoresins and access to some of the finest raw materials,
opportunities to venture into subsidiary food flavouring avenues were identified. The first of these
to materialise was the Herbal Isolates (P) Ltd. Launched in 1985 to manufacture essential oils and
specialised spices. This was followed by the launch of Synthite’s Fragrance division in 1986, for
the production of floral concretes and absolutes. Besides the expansion of business, Synthite
underwent geographical expansions too, first in Coimbatore where the Fragrance division was set
up, then in Calicut, where it acquired Sijmak Oils Ltd. (now Synthite Calicut) as an exclusive
export-oriented unit of herbal extracts.
With its constant growth and innovation, Synthite had already carved a niche for itself in the Indian
spice extract industry. 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. 1994 was a landmark year for Synthite when it became the first Indian
company to obtain an ISO 9002 certification.
More than just business
As a growing company, 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. As an
organisation, it focuses on integrity in all its relationships with customers, employees and
stakeholders.
Synthite believes in sustainable growth – Growth which is fostered through innovation that is
customer-centric and earth-friendly. And Synthite reaped the reward of sticking to its value system.
In early 2000 with the rise of the pro-environment movement, people all over the world began to
develop more conscious eating habits. Food buying decisions were no longer just about where you
buy your food from, but what goes into that food. Synthite’s transparent sourcing system and clean
processing enabled it to meet the growing demands of the changing markets, making them the
preferred ingredients provider among food and beverage industries in the world.
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. Also Synthite
responds to global consumer needs and keeping it one step ahead of the curve is the New Products
Development (NPD) division.

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In 2006, Synthite launched (i) Spice division, (ii) Aromco Flavour India Pvt Ltd, a joint venture
with Aromco, UK and (iii) Symega Savory Technology Pvt Ltd, a joint venture with Omega,
Austria.
CO2 SFE plant was launched in 2007. The introduction of Super Critical Fluid Technology
particularly created ripples in the value added spice extracts industry. As one of the early endorsers
of this technology, Synthite could offer its clients a wide range of botanical extracts of impeccable
purity and customer specific precision.
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, China. The facility was set up for the production
of Paprika Oleoresins – a product Synthite is best known for. With advanced equipment, skilled
workforce and state of the art facilities, the new manufacturing unit is delivering outstanding
results. Besides its production facility, Synthite runs its worldwide operations out of offices in the
US and China and sales offices set up in Mumbai, Delhi and Bangalore.
While Synthite is recognised worldwide for its impeccable quality paprika, its advanced spice
division produces and processes a variety of other value added spice extracts that are recognised
as the best in class. Located at the state of the art Synthite Taste Park, the division is manned by a
team of well-trained personnel with stellar technical and scientific expertise. Synthite’s spice
division offers whole, powdered and even processed spices that meet global food safety standards.
Wide range of powdered and sterilised spices conform to the stringent European Commission
directives for microbial load, pesticide residues, aflatoxin and other contaminants. In 2012,
‘Spices’ division launched spice powders in Kerala’s retail market with the brand name ‘Kitchen
Treasures’. Later new products of masala mixes were added to this brand.
Commitment to quality
Synthite never takes the quality of its products for granted. Synthite follows the finest practices in
quality management and has a multi- layered quality control system that begins right at the farming
stage. 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. Synthite takes its partnership with the farming
community seriously. As a core part of their business, the company seeks to create a more informed
and aware community. By understanding real world needs and problems of the farmers, and
providing them with the support and assistance they require, Synthite is moulding them to adapt
to the multitude of challenges that the future may possess.
It is this technical superiority, 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.

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The Synthite difference
By consistently delivering the ingredients of success, Synthite leads in the global arena today.
Recognised for its integrated solution inspired by nature and fair business practices, Synthite is
constantly improving the quality of life by improving the quality of food. In the fight against
synthetic additives, it is providing the world with natural alternatives to colouring and flavouring
food. But the story that started with the lure of spices has today diversified into other areas with
the same commitment to the environment.
As a part of the continuous value optimisation strategy, Synthite first diversified into wind energy,
using unconventional energy as a power source for its manufacturing.
Forays into hospitality lead to the setting up of eco friendly apartments and hotels that have set a
benchmark in luxury living and realty.
Synthite owns ‘Riviera Suites’, an apartment hotel in Thevara, Cochin. The hotel is built on four
acres of beautifully landscaped gardens beside the Vembanadu Lake.
Synthite’s ‘Ramada Resorts’ is a luxury retreat set within eight sprawling acres beside the
picturesque lakes of Kumbalam, in the outskirts of Cochin. Nestled in a picture-perfect locale,
amidst an ambience of absolute serenity, Ramada Resort is a haven of leisure for the city-weary
soul. The resort is conveniently close to the city, yet far removed from its din and bustle.
Synthite’s vision for the future of the company is simple – grow a sustainable business that honours
its responsibilities toward its customers, stakeholders and most importantly, to the planet. Its
commitment to innovation and technology has brought the company this far, and a commitment to
quality will take them ahead.

VISION, MISSION & VALUES

Vision
"By consistently delivering the ingredients of success for the most exciting food, health and
fragrance solutions, we will be the partner of choice to our clients worldwide."
Mission
1. Sustainable Growth: Grow smart, grow fast, and grow together.
2. Innovation: Operational excellence powered by innovation.
3. Customer Service: Cultivate customers, care more.
4. Enhance Value: For all stakeholders.
5. Making it a great place to work: Winning people through collaboration.
Values
Values are the bedrock of an organisation. They form the basis of the behavior of its members. At
Synthite, we strive to find the perfect balance between individual and organizational values.

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As an organization, Synthite has always insisted on a strong sense of business ethics and moral
values. We lead by example, so our values become the values of our people. We believe in
motivating and encouraging, instead of conditioning or enforcing. And it is this value-system that
defines the way we function, as an organization and as a family.
1. Performance
We are constantly looking to improve our performance and better the quality of life, by improving
the quality of food. We are replacing synthetic additives, colours and flavourings with natural
alternatives. This ensures better health for our consumers and a better world to live in.
2. Fairness
At Synthite, we have always given due credit to the value of fairness. And we have always
expected and offered this quality in all our business transactions. Synthite has been consistent and
principled in every relationship. Be it with our clients, our employees, or our stakeholders.
3. Innovation
At Synthite, we believe that our technology combined with our acumen for innovation, has always
helped us address even the most challenging customer requirements. So, 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.
4. Commitment
We are accountable to the customers we serve, to the employees we work with, and to the
environment in which we exist. Synthite honours its commitments to all of the above, and works
symbiotically with them, pledging to give back more than what it takes.
5. 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.
6. Teamwork
As we moved up the ranks as an organization, our employees have moved up with us. This
teamwork is the essence of our work culture.

PRODUCTS AND SERVICES

Industrial Products
1. Oleoresins
2. Essential Oils
3. Lutein and Marigold

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 4. Green Spice Extracts
5. Herbal Extracts
6. Tea & Coffee Extracts
Industrial Services
1. Analytic Solutions
2. Sensory Solutions
3. Application Solutions
Consumer Products
1. Sprig
2. Kitchen Treasures
3. NatXtra

THE FINANCIAL GROWTH

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.
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.
They 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.
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.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.

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 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, 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.
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.
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.
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.
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.
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

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