Synthite Group diversifies in to various biz

Kochi: The spice oleoresin major Synthite Group, after a re-branding exercise, is targeting business revenues of Rs 1,000 crore in the next four years.

The Rs 450-crore group, with 30 per cent share in the spice oleoresin category in the world market, is looking at Rs 500-crore turnover in 2009, Mr George Paul, Director, said.

Restructuring is going on and once the SAP software is in place, we will have a closer look at each product, he said, adding that there is a need to focus on innovative products.

Asked if recession had affected the group, he said there was a delay in remittances. However, the food industry has not been affected. As far as India is concerned, the impact of the meltdown would be much less compared to the US and Europe, he said.

Synthite has diversified into wind energy sector and hopes to exploit non-conventional energy as a power source for its manufacturing. In addition, the company relies on co-generation of steam and electricity by using its own agro waste.

The group has proposed to invest in five units of 1.5 MW capacity in Attappady in Palakkad district with an investment of Rs 3.5 crore each.

However, the Kerala State Electricity Board is not allowing captive consumption at present and there is need for a change in the policy, he said.

The group has also expanded its activities into the realty and hospitality sectors.

The hospitality division recently opened Ramada Resort at Kumbalam near Kochi at an investment of Rs 55 crore after entering into a tie up with Ramada Worldwide. There are also plans for a multi-storey hotel but there was uncertainty due to Coastal Regulation Zone norms, he said.

As part of its attempts to reposition itself as a valued partner, Synthite has also entered into strategic tie ups with global major such as Aromoco UK for the manufacture of sweet flavours and Omega Food Technology, Austria, for the manufacture of savoury flavours.

Synthite Industries Ltd, the flagship company of the group, has over 500 products including spice oleoresin, essential oils, natural food colours, floral absolutes, health ingredients and micro capsulated/spray dried products.