Synthite bids for SE Asian expansion through Chinese acquisition
Synthite, which is a majority exporter of products such as fresh and dried spices and oleoresins, announced last month that it bought a leading player in the natural specialties and natural colours market in China.
Aju Jacob, director at Synthite had said at that time that the Chinese firm, which is located at Xinjian in the southern Jiangxi province, was acquired for US$3m.
However Jacob had refused to disclose the firm’s name.
FoodNavigator-Asia contacted Stanley Matthews, general manager of marketing at Synthite, who told FoodNavigator-Asia the company didn’t want to disclose the name of the firm just now but added the acquisition was very nearly complete.
He said that the acquisition would help Synthite enter the Chinese market for natural colours and from there, the company wanted to target the rest of Southeast Asia where its footprint is not extensive.
“This facility has been acquired for manufacturing colour extracts from sweet paprika for the neighboring international markets [in Southeast Asia]. We would then also look at nutraceuticals and natural products at a later stage,” he said.
Synthite has manufacturing facilities in six locations in India and sales operations across the world, commanding 30% of the global market share of oleoresins.
Pointing out that there still are growth opportunities for Synthite in Asian and Latin American markets, Matthews said that the company would also keenly look at “going to Sri Lanka and Indonesia for the market for clove extracts.”
Jacob has said in his statements to the media that he would be looking to expand in those regions by commissioning new plants, acquiring existing companies or through joint ventures with established players.