New Delhi, June 22 -- Synthite Industries Pvt Ltd, a Kerala-based speciality ingredients manufacturer, is planning to raise its maiden institutional round of funding and has even hired an investment bank to formalise the process, at least two people aware of the development told VCCircle.
Synthite Industries, which claims to be world's largest manufacturer and exporter of spice oleoresins and essential oils, is looking to raise around $200 million (around Rs 1,890 crore), one of the aforementioned individuals said.
Global investment banking firm Investec is believed to be helping the company scout for potential private equity suitors, a second person said, adding that the company's promoters may dilute a minority stake in the firm.
Email queries sent to Synthite and Investec remained unanswered till the time of publishing this news article.
Founded in 1972, Synthite Industries Ltd currently has a portfolio of over 500 products that focus on plant-derived ingredients for flavour and fragrance solutions.
Synthite has a robust global market share of around 20% in its top four crops--paprika, turmeric, pepper and capsicum--with its market share for these 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 its diabetes-control and wellness brand 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 Kerala's Plant Lipids, Mane Kancor and VKL Seasoning among others in the domestic market.
The broader nutraceuticals ingredients space in the recent past has witnessed considerable interest from institutional investors.
For instance, last week, VCCircle reported that OmniActive Health Technologies is in talks with two global investors for a stake sale.
India specialty food ingredients market size reached $5.5 Billion in 2025 and is expected to reach $8.4 Billion by 2034, with a growth rate (CAGR) of 4.65% during 2026-2034. The increasing 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 expansion of the market.
Published by HT Digital Content Services with permission from VC Circle.