Parry Nutraceuticals, Valensa Expand Microalgae Plans Through Joint Venture with Synthite Industries
A $6.5 million investment opens a new plant producing Phycocyanin and future markets for value-added derivatives from microalgae
ORLANDO, Fla. (February 5, 2018) — Florida-based Valensa International announced today a joint venture agreement between Valensa’s parent company EID Parry, and Synthite Industries Ltd., which expands Valensa’s plans to lead the development and distribution of value-added microalgae extracts for nutraceutical applications. The agreement includes a $6.5 million investment to establish a new plant for the extraction of Parry Organic Spirulina to produce Phycocyanin, which Valensa will be developing for dietary supplements, functional and medical foods.
Both Parry Nutraceuticals and Valensa International are divisions of EID Parry and the $5 billion Murugappa Group. The 50-50 joint venture will leverage Parry Nutraceutical’s cultivation strengths and Synthite’s extraction capabilities making it a strategic fit for both the partners. In addition, their strengths in marketing will be synergistic, with Parry Nutraceuticals and Valensa focusing on the global human nutrition segment while Synthite Industries will focus on food colors and additives.
The joint venture will set up a manufacturing facility in Tamil Nadu, India for the production of Phycocyanin, a natural blue pigment extracted from Spirulina.
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 ‘Coloring 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.”
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.”
About the Companies
- Synthite, established in 1972, is a diversified group with revenue touching $270 million. Visit synthite.com.
- Based in Chennai, India, Parry Nutraceuticals is a division of EID Parry India Ltd. (NSE: EIDPARRY), and part of the Murugappa Group. Visit com and murugappa.com.