How He Built World's Largest Spice Empire, Supplying Nestle & PepsiCo | Dr. Viju | FO524 Raj Shamani
Raj Shamani talks to Dr. Viju Jacob of Synthite Industries, a Kerala company that is one of the world's largest makers of spice extracts. Dr. Jacob explains how a small pepper-extraction business grew into a group that supplies Nestle and Pepsi, why he advises aiming for the number four spot in an industry instead of number one, how he handled a big export order that nearly went wrong, and why he is moving into supplements and fermentation. Useful for founders in manufacturing and B2B.
Executive Summary (TL;DR)
Dr. Viju Jacob explains how Synthite Industries went from a ten-person pepper extract business in Kerala to a global supplier of spice extracts for companies such as Nestle and Pepsi. He talks about learning every part of the business from his father, selling a product customers did not understand, growing by making ready-to-use flavour blends, and waiting hours for a meeting to win a big client. He argues that an industry's number two to four players earn well with less legal and competitive heat, explains why the group makes paprika extract in China, and describes its push into supplements. His comments on supplement ingredients are his own view and not health advice.
Key Takeaways
Start with the number four player, not number one
Jacob says a small entrant should study the market and aim for a share of the fourth producer. The investment is smaller, you have time to understand the business, and the leader carries the legal and competitive burden.