The Synthite group, a leader in oleoresin manufacturing, has expanded its chilli contract farming activity in Andhra Pradesh.
The company has drawn up an ambitious expansion plan to grow and buy chilli from that State.
The expansion plan is part of the group’s overall target to be a ₹3,000-crore company by 2020.
The turnover of Synthite currently is ₹1,400 crore, said Managing Director George Paul.
The Kochi-based group, which has interests in multiple sectors including oleoresins, exports, hotel and realty, is presently helping chilli farmers in Andhra Pradesh undertake cultivation with the minimum amount of pesticides.
This was a win-win situation for farmers and the company because Synthite would get pesticide-free chilli and the farmers were assured of buyback at a price higher than the market price. Most of the chilli farmers for Synthite in Andhra Pradesh are in Ongole in Prakasam district and they grow mostly the Tejaswini variety of chilli known for its high pungency.
Synthite extracts the natural colour and the pungency of the Tejaswini chilli for supply to a range of food applications.
Anand Behl, Head of the Synthite’s FarmTech division, said the company presently co-ordinates chilli farming in some 1,700 acres by 420 farmers.
By 2020, the target is to have 5,000 farmers, 10,000 acres under cultivation and 20,000 tonnes of production.
In 2013, the company had 110 farmers cultivating chilli over 300 acres.
At Ongole, Synthite has established a processing unit at an outlay of ₹35 crore.
Synthite has a strong presence in the world oleoresin market and its products are exported to 85 countries.
Recently, the group entered the FMCG segment with its Kitchen Treasures brand which offers a range of masalas, curry powders and packaged spices.