From Rs 3 crore to Rs 1,700 crore: How Kerala-based Synthite built a global spice business

Synthite Industries, a Kerala-based spice extraction company that began with a single product and 10 employees, has grown into a global speciality ingredients company with a group turnover of about Rs 1,700 crore, its Executive Chairman, Dr Viju Jacob, told Business Today TV.

Speaking in an exclusive interview with Business Today, Jacob traced the company's growth from a small extraction unit founded by his father in 1970 to a multinational business supplying global customers across food, perfumery and supplements.

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"We were born and brought up in Kerala, and my father started this business in 1970, but with just one single product, like black pepper extract and 10 employees," he said. "But we could not succeed till 1976 because of certain technical reasons of the product. So in 1976, we had an opening in the US company, and they started buying small quantities. Even though my father was not a technology person, those guys from the West helped us to make some improvements to the product. That's how we started with one product."

The company gradually expanded its product portfolio, adding ginger and other extracts over time. Jacob joined the business in 1982 after working on the shop floor during his school and college years, and the company had expanded to 30–40 products by then. A joint venture with a French company in 1985 to produce flower extracts for the perfume industry helped the company gain visibility in Europe.

"I was engaged in the production as well as the marketing of the flower extractions for perfume, and I got visibility in the French market. The journey was good, and we grew very well in that field. After that, we went for marigold production."

From an industry perspective, companies like Synthite represent India's emerging global players, said Nikhil Gupta, Partner, Investment Banking at EY, noting that exports account for a majority of the company's revenue and that it operates manufacturing facilities in multiple countries.

"Synthite, in particular, has taken the route of becoming a leading player not only in India but globally. I believe their total revenues from export markets today contribute 60 to 70%. And having facilities in countries like China, Brazil, operations in Vietnam, Sri Lanka, it's truly a global company serving global customers."

A key driver of Synthite's growth has been its focus on innovation and research and development, Jacob said, adding that innovation must extend across functions, not just product development.

He said the company has moved from selling individual spice extracts to providing blended solutions to customers, supported by automation and robotics in manufacturing.

"In earlier days, we used to sell only individual extracts, for example, ginger extract or pepper extract. Now, we are blending it and giving it to the customers. It's easier for them, and it is easier for us as a segment. From a supplier, we are getting into a solution provider. Just because of that, one of our plants is completely a robotic plant. So the robot is doing the entire job for blending."

Jacob said the Indian market itself remains a major growth opportunity. He recalled that in 1999, the company's India business was only Rs 3 crore, after which the company began focusing on domestic expansion.

"In 1999, Synthite was having only 3 crores of business in the Indian market. After looking into the Indian market, from Rs 3 crores, the group's turnover is about Rs 1,700 crores."

He added that innovation in food, perfumery and supplements continues to create new opportunities for spice-based ingredients, and the company is focused on developing new products for both Indian and global markets. "I always tell the R&D team, you have to see what is the next thing that you can bring into the market, what disruption that you can do."