EID Parry, a Murugappa Group company, has teamed up with Synthite Industries Ltd. of Cochin to start an equal joint venture focussed on value-added algae-based products.
The joint venture will set up a manufacturing facility in Tamil Nadu with an investment of about ₹40 crore 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 U.S., the EU, Japan and South Korea as food colour.
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EID Parry has a division — Parry Nutraceuticals — a pioneer in the production of micro algae-based products.
“The proposed 50:50 JV will leverage on Parry Nutraceuticals’ spirulina cultivation strengths and Synthite’s extraction capabilities, making it a good strategic fit for both the partners. In addition, their strengths in marketing will be synergistic with Parry Nutraceuticals focusing on the human nutrition segment and Synthite Industries on the food colours and additives segment,” according to a company release. Spirulina is an established nutritional health supplement, and is the flagship product of Parry Nutraceuticals.
“To start with, we will be focusing on extracting phycocyanin from spirulina. In due course, we will be looking at other avenues within the micro algae segment, thereby building the business to a company with a diversified value-added algae portfolio,” said Muthu Murugappan, Business Head of Parry Nutraceuticals.
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Synthite, established in 1972, is a diversified group with revenue touching ₹1,800 crore. 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 and coffee extracts and nutraceuticals and other plant extracts.