Oterra — the Danish based natural colour manufacturer and the parent company of Akay Natural Ingredients — is investing close to ₹100 crore in India over a period of three years to scale up its production facility in Kochi.
Martin Sontag, Global CEO of Oterra Group, who was in Kochi for the opening of the first manufacturing plant at an investment of ₹10 crore, said that they would scale up the current production capacity from the present 200 tonnes to 1000 tonnes per year in the next three years.
Oterra is the leading developer and manufacturer of natural colouring ingredients and serving customers in the F & B industry. The company is the global leader in the natural colour industry in terms of innovation, application, formulation, product and geographical reach.
Sontag, who also attended the Invest Kerala Global Summit, said they intended to develop natural colours to cater to the rising demand from both India and Asia Pacific market, which is growing at a rapid pace especially post Covid. At present, the company plans to cater to the demand from the Indian market from the newly opened plant and later on to Asia-Pacific region with expansion of the existing facility in Kochi.
Long term vision
“Our long term vision is to scale up the quantum of investment in tune with business growth and new opportunities in this sector for which we see India as a great choice. Oterra would also evaluate options for growth opportunities in allied sectors in a favourable market like India”, he added.
Emmanuel Nambusseril, chairman of All India Spices Exporters Forum said that the demand for natural colours especially in the F&B industry is surging, thanks to rising disposable income and increased consumer preference for healthy and natural coloured food. The market is currently dominated by cheap synthetic colours and there has been a slow and steady consumer shift towards natural coloured food and beverages.
The market for natural colour in India is estimated at $20 million and the demand is mainly met by very few companies. “We expect an exponential growth with rising demand from consumers”, he said.