Started with black pepper, built Rs 3,000 crore business: How a Keralite created a global spice giant ‘Synthite’

In the early 1970s, extracting concentrated flavours and aromas from spices was still an emerging business in India. While most traders focused on selling spices in their raw form, Kerala-based entrepreneur CV Jacob recognised an opportunity to transform them into value-added ingredients for food manufacturers around the world.

In 1972, Jacob established Synthite Industrial Pvt Ltd, beginning with the extraction of oleoresins from black pepper. More than five decades later, the business has grown into a major player in the global spice and food ingredient industry. Synthite Industries reported revenue of Rs 3,122.6 crore in FY25, marking its highest revenue in the last five financial years.

Key Highlights

• CV Jacob established Synthite Industrial Pvt Ltd in 1972, starting with black pepper oleoresins.
• The company has expanded from spice extracts into essential oils, natural colours, flavours and functional food ingredients.
• Synthite offers more than 500 products and serves customers in over 90 countries.
• The company reported revenue of Rs 3,122.6 crore in FY25, according to Tracxn data.
• Its FY25 net profit recovered to Rs 194.2 crore, up around 54% from the previous financial year.

Who Was CV Jacob? The Entrepreneur Behind Synthite

Before entering the spice processing industry, CV Jacob had already built experience across several businesses. He began his professional journey in 1950 through the cardamom trade and auctions. In 1951, he took over his family’s civil engineering contracting business, laying the foundation for his entrepreneurial career.

In 1954, Jacob established a partnership firm called Varkeysons to expand the contracting business. The company subsequently secured contracts for major infrastructure projects in Kerala, including the Sabarigiri and Idukki hydroelectric projects.

Jacob developed expertise in tunnelling and bridge construction. Among his early assignments were the diversion tunnel at Anairangal dam between 1959 and 1960 and the access tunnel to the underground powerhouse at Moolamattom between 1964 and 1966.

However, his business interests were not limited to infrastructure. In 1965, he established Arborites Pvt Ltd to manufacture urea-formaldehyde resin. In 1967, he also set up a mechanised quarry and granite-crushing unit named Slabs and Aggregates.

These ventures gave Jacob valuable experience in manufacturing and industrial operations before he moved into the specialised business of spice extraction.

How Synthite Started With Black Pepper Oleoresins

Jacob established Synthite Industrial Pvt Ltd in 1972, marking his entry into the spice processing industry. The company initially focused on extracting oleoresins from black pepper, a product that offered food manufacturers a concentrated form of the spice’s flavour and aroma.

Oleoresins are natural extracts obtained from spices. They contain essential oils and other flavour compounds, allowing manufacturers to use concentrated ingredients instead of relying entirely on raw spices.

These extracts are particularly useful in food production because they can help manufacturers maintain consistency in flavour, aroma and quality across different batches. This creates opportunities for spice processors to serve large food companies that require standardised ingredients.

By focusing on value-added processing rather than simply trading raw spices, Synthite entered a specialised segment of the food ingredient industry. Its business gradually expanded as demand grew for concentrated flavours and other natural ingredients.

From Pepper Extracts to More Than 500 Products

Over the years, Synthite diversified beyond black pepper oleoresins. Its product portfolio expanded to include essential oils, natural food colours, flavours and functional food ingredients.

According to the company, its portfolio now includes more than 500 products serving customers across multiple industries. This diversification has helped Synthite develop a broader presence in the food and ingredient supply chain.

The company also expanded into customised food solutions through Symega, which focuses on flavours, seasonings and food ingredients. This move allowed the business to participate in a wider range of applications beyond traditional spice extracts.

In 2006, Synthite established Synthite Taste Park in Kerala, a dedicated food-tech facility focused on value-added spice derivatives and food ingredients. The company subsequently entered joint ventures in the flavour business, including Aromco Flavours India and Symega Savoury Technologies.

Synthite’s Global Presence and Manufacturing Network

Synthite’s growth has extended beyond India, with its products reaching international food and ingredient markets. According to information published on its website, the company serves customers in more than 90 countries and operates eight manufacturing facilities.

The company also has a workforce of over 3,000 people. Its manufacturing network covers several Indian states, including Kerala, Karnataka, Tamil Nadu and Andhra Pradesh.

Alongside its traditional spice extraction business, Synthite has expanded into botanical extracts and ingredients used in food, beverages, wellness and personal care applications. This wider portfolio connects the company with industries that use natural extracts and specialised ingredients in their products.

Its international customer base and manufacturing operations reflect the transformation of a business that began with a single spice extract into a diversified ingredient supplier.

Synthite Founder CV Jacob’s Legacy

CV Jacob died in 2021 at the age of 87. His entrepreneurial journey covered several industries, including cardamom trading, civil engineering, resin manufacturing, quarrying and spice processing.

His decision to enter spice oleoresin extraction in 1972 became a defining moment in the company’s history. Instead of remaining limited to conventional spice trading, Synthite built its business around processing and supplying specialised ingredients for manufacturers.

The company’s subsequent expansion into flavours, food colours, botanical extracts and customised food solutions carried that original approach into new product categories and international markets.

Synthite Industries Revenue Crosses Rs 3,000 Crore in FY25

Synthite Industries’ financial performance highlights the scale of its expansion over the past five years. According to data available on Tracxn, the company reported revenue of Rs 3,122.6 crore in FY25, its highest level during the period.

Revenue increased from Rs 1,887.8 crore in FY21 to Rs 2,303.1 crore in FY22. It subsequently rose to Rs 2,653.9 crore in FY23 before moderating to Rs 2,582.3 crore in FY24.

The company returned to stronger growth in FY25, when revenue increased by around 21% year-on-year to Rs 3,122.6 crore. Tracxn data indicates that Synthite recorded a five-year revenue compound annual growth rate (CAGR) of approximately 13%.

The figures show that the business has expanded substantially since FY21, although its revenue growth has not been uniform in every financial year.

Net Profit Recovers After a Sharp Decline in FY24

While Synthite’s revenue has followed a broadly upward trajectory, its net profit has experienced more fluctuations. The company reported a net profit of Rs 220 crore in FY21, which increased to Rs 290.2 crore in FY22.

Profit subsequently declined to Rs 282.9 crore in FY23 and fell more sharply to Rs 126.5 crore in FY24. However, the company recorded a recovery in FY25, with net profit rising to Rs 194.2 crore.

This represented an increase of around 54% compared with FY24. Although the recovery indicates an improvement in profitability, FY25 net profit remained below the levels reported in FY21, FY22 and FY23.

The difference between revenue and profit growth also highlights why both measures matter when assessing a company’s financial performance. Higher revenue indicates business expansion, while net profit provides a separate view of how much earnings the company retains after expenses.

How Synthite Transformed From a Small Spice Venture Into a Global Business

Synthite’s journey illustrates how value addition can create opportunities in an industry traditionally associated with agricultural commodities. The company began by extracting concentrated flavour and aroma components from black pepper, but gradually expanded into a wide range of ingredients and food solutions.

Its growth has involved diversification, manufacturing expansion, joint ventures and entry into international markets. The business now serves customers across more than 90 countries and operates in several product categories connected to food, beverages, wellness and personal care.

From CV Jacob’s early experience in trading and engineering to the establishment of Synthite in 1972, the company’s history reflects a long-term shift from conventional commodity trading towards specialised manufacturing. With FY25 revenue crossing Rs 3,000 crore, Synthite has become a significant example of how an Indian entrepreneur built a global business by adding value to the country’s spice resources.