Jan 31: Chennai-based EID Parry (India) Ltd, one of India’s leading sugar manufacturers with interests in bio pesticides and nutraceuticals, on Wednesday announced a Joint Venture with Synthite Industries Ltd, Cochin with a vision to grow the business of its division Parry Nutraceuticals as a value-added Algae Company.
Parry Nutraceuticals is a pioneer in the production of microalgae based products.
According to EID Parry, 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. 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. Spirulina is an established nutritional health supplement and is the flagship product of Parry Nutraceuticals.
The Joint Venture Company will set up a manufacturing facility in Tamil Nadu with an investment of around Rs 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 USA, EU, Japan and South Korea as food colour, according to the company.
Aju Jacob, Director, Synthite Industries said, “Our partnership will offer our customers a high quality, sustainable, supply of Phycocyanin blue. Our leading edge technology will allow us to qualify our product as a natural ‘Colouring Food’ for European markets and as a certified organic product for the US market. We will also explore emerging opportunities in Algae extracts for the global health and wellness industry.”
Speaking about the Joint Venture, Muthu Murugappan, Business Head of Parry Nutraceuticals said, “To start with, we will be focusing on extracting Phycocyanin from Spirulina. In due course, we will be looking at other avenues within the microalgae segment thereby building the business to a company with a diversified value-added Algae portfolio.”
Shares of EID Parry were trading at Rs 325.05, up 0.11% from the previous closing of Rs 324.70, on BSE at 1.18 pm today.