New Delhi, Aug. 21 -- A clutch of financial investors are in the fray to pick up minority stake in a local speciality ingredients manufacturer, at least two people aware of the development told VCCircle.
Bulge bracket firms including EQT, CVC Capital, Bain Capital and homegrown investment firm Multiples Alternate Asset Management are among the suitors which are evaluating investment in the Kerala headquartered Synthite Industries Pvt Ltd.
In June, VCCircle was the first to report that Synthite is intending to raise its debut external round of funding.
Global investment banking firm Investec is believed to be helping the company scout for potential private equity suitors.
The company is likely to dilute a minority stake in the firm to raise around $150 million (around Rs 1,435 crore) in funding, the aforementioned individuals said.
EQT and Bain Capital declined to comment. Email queries sent to Synthite and other investors remained unanswered till the time of publishing this news article.
Target company
Synthite Industries claims itself to be world's largest manufacturer and exporter of spice oleoresins and essential oils.
Founded in 1972, Synthite Industries Ltd currently has a portfolio of over 500 products that focus on plant-derived ingredients that add flavour and fragrance to various products. They serve food and beverage brands; and own consumer brands such as Paul and Mike, Sprig and Kitchen Treasures, among other things.
The company has a robust global market share of around 20% for its top four crop extracts, which are paprika, turmeric, pepper and capsicum, with market share in India being even higher at nearly 34%, as per an analyst tracking the company.
The firm entered the food supplements segment eight years ago with NatXtra, and has since built a Rs 70 crore business in this vertical.
Synthite has expanded its international footprint, with NatXtra products now available on Walmart in the US and across West Asia. The brand has launched around 30 products spanning multiple categories.
The firm had posted consolidated net sales of Rs 3,051 crore in FY25 as against Rs 2,504 crore a year ago. The company's PAT stood at Rs 201 crore as compared to Rs 129 crore during the period under review, as per VCCEdge.
Synthite Industries competes with the likes of Kerala's Plant Lipids, Mane Cancor and VKL Seasonings in the domestic market.
The broader nutraceuticals ingredients space has off late witnessed considerable interest from institutional investors.
For instance, earlier this year VCCircle reported that OmniActive Health Technologies is in parallel talks with two global investors.
India specialty food ingredients market size reached $5.5 billion in 2025 and is expected to touch $8.4 billion by 2034, with a growth rate (CAGR) of 4.65% during 2026-2034. The growing emphasis on sustainability in the food industry, leading to the adoption of eco-friendly and sustainable food ingredient sourcing and production practices, is driving the market.
Published by HT Digital Content Services with permission from VC Circle.