EID Parry (India) Limited
has announced a Joint Venture with Synthite Industries Ltd, Cochin with a vision to grow the business as a value-added algae company. The 50:50 JV will leverage on Parry Nutra's spirulina cultivation strengths and Synthite's extraction capabilities, making it a good strategic fit for both the partners. The company will invest an amount of Rs11cr in the JV company.
In addition, the strengths of both the companies in marketing will be synergistic, with Parry Nutraceuticals (a division of EID Parry) focusing on the human nutrition segment and Synthite Industries on the food colours and additives segment. Spirulina is an established nutritional health supplement and is the flagship product of Parry Nutraceuticals.
The JV company will set up a manufacturing facility in Tamil Nadu with an investment of around Rs40cr for the production of Phycocyanin, a natural blue pigment extracted from Spirulina. Phycocyanin is a complex of light-harvesting proteins, extracted from Spirulina, which has a characteristic deep blue colour. Phycocyanin offers excellent stability and flexibility for application in a variety of food and beverages and is approved by all major regulatory bodies in the US, the EU, Japan and South Korea as food colour.
Synthite is a diversified group with revenue of ~Rs1,800cr in FY17. The group's interests span across food ingredients, hospitality, realty, and wind power. Synthite's food ingredient products include spice oils and oleoresins, natural colours, floral extracts, antioxidants, tea & coffee extracts and nutraceuticals and other plant extracts. It commands over 30% share in the global spice oleoresin market.
The stock of EID Parry is trading at a price of Rs325.8, up by 0.34% or Rs1.1, on BSE at 12.16 PM.