The ‘Synthite Model’ of sustainable business development

Times have changed, and so have business practices. Environmental, Social, and Governance (ESG) principles are increasingly vital in today’s complex global landscape.

ESG principles enhance the competitiveness and resilience of businesses in the face of challenges. The practices followed by Synthite illustrate this approach. 

Synthite Industries specialises in producing world-class spice extracts and oleoresins. Multinational companies in the natural products market now look for suppliers who meet ESG standards along with quality and competitiveness.

We ensure consistent quality through advanced technology and prioritise sustainable farming practices, even in the procurement of agricultural products. Synthite works to keep prices competitive and maintain quality when procuring agricultural products, sourcing from as far as China and Zimbabwe.

Synthite’s practices are firmly rooted in ESG norms, including sustainable water reuse, renewable energy, and procurement from local farmers based on ethical values.

This comprehensive approach has made Synthite a trusted supplier to multinational companies that demand high standards. Additionally, these factors help Synthite build long-term, value-based partnerships with these companies.

Sustainable practices

For Synthite, a company that deals in natural food ingredients, sustainability is not just a choice but a necessity. Product quality, safety, and sustainability are at the heart of everything Synthite does.

One of the company’s standout initiatives is the Farm Sustainability Assessment (FSA), involving 160 chilli farmers in Karnataka and Andhra Pradesh.

These farms, ranging from 22 to 500 acres, benefit from sustainable farming practices that improve soil health, reduce chemical use, and promote biodiversity.

This initiative has transformed how we interact with our raw material suppliers. While promoting eco-friendly farming practices, we ensure that the benefits of our success also flow to the farmers we work with.

Sustainable production is another key achievement. Synthite has conducted a comprehensive carbon footprint study of 12 of its primary products and aims to conduct similar analyses for all products by 2027, with the goal of completing a full life cycle assessment of all products by 2030.

This data-driven approach will help us identify areas for improvement and develop solutions to minimise carbon emissions and environmental impact.

An exemplary supply chain

Another significant achievement is the local production of Japonica rice, a key ingredient in Korean and Japanese cuisine.

By building a local supply chain, we have eliminated the need for imports, reducing carbon emissions from transportation and decreasing our overall carbon footprint.

This development has made our operations more sustainable while enabling us to meet the growing demand for high-quality raw materials without relying on external sources.

In addition to reducing environmental impact, the economic benefits generated locally showcase how sustainability and profitability can be shared across the value chain.

Water conservation

We are also working with our product innovation team to explore the potential use of recycled materials for packaging.

Our Kadayirippu and Harihar Nagar units have implemented rainwater harvesting and groundwater recharge systems to maximise the use of natural resources.

Additionally, our Maradoor plant has reduced water usage by 50 percent by implementing a reverse osmosis (RO) system that recycles wastewater.

Such water conservation systems help reduce environmental pollution and ensure long-term sustainability, even in areas facing water shortages.

Human resource development

Investing in human resources is as essential as our other efforts. We understand that sustainable growth cannot be achieved without developing human capital.

The Synthite Center of Learning and Development (TCLUD) supports employees in three key areas: leadership, competency enhancement, and skill development.

This empowers team members to excel in their roles, fosters innovation, and contributes to the company’s long-term success.

Safety is another critical aspect of our operations. Our Occupational Health and Safety Management System applies to all employees, ensuring a safe work environment for management and non-management staff alike.

Corporate social responsibility

The company is committed to corporate social responsibility, actively engaging with the communities it is associated with and implementing beneficial projects in the areas of health, education, and the environment.

Our initiatives range from healthcare aid for the underprivileged to sponsoring educational programmes that support students from disadvantaged backgrounds.

Transparency in operations

The company’s committees and operating policies are instrumental in maintaining standards, identifying and addressing challenges, and ensuring transparency across all operations. Our success relies on teamwork and coordination.

Consistent progress is embedded in our culture, and we strive to develop the highest quality products by integrating advanced technology, innovation, and sustainability. By adhering to ESG principles, we ensure long-term success and contribute to creating a more sustainable and equitable world.

(The author, Aju Jacob, is the Managing Director of Synthite Industries, India’s largest producer of spice oils and oleoresins. A chemical engineer by training, he joined Synthite in 1987, a year after graduating, bringing a blend of technical insight and entrepreneurial spirit to the family business founded by his father, CV Jacob.

According to rating agency Crisil, "The company has around 500 products and continues to invest in research and development to meet global quality standards and customise products as per client requirements.")

This article was previously published in Dhanam business magazine.