KOCHI: Some time back, a DJ party was at its peak at Ramada Resort, an upscale hotel that overlooks the west coast canal in Kumbalam just outside the city. Sitting in a distant corner of the bar sipping a lime soda and surveying the crowd was the owner of the resort himself. This is his first visit to a DJ party at the resort. What caught his attention was a group of three youngsters, probably in their 20s or early 30s. When the group left the party, the owner, of the bar went to counter and checked their bill. “It was something like Rs 40,000. They may have spend just 3-4 hours,” he says, trying to recollect the incident. “Next day I shut the DJ party business. I don’t want this money.”
It’s more than a year since that day and the hotel is yet to open its doors to DJ Party or the bar, except for private bookings.
Meet Viju Jacob, who’ll take reins of the Rs 1,500 crore Synthite Group as its managing director from October 1. The group, founded in 1972 as a small spice extraction firm, is grown to become the world’s largest producer of value-added spices in less than half a decade, have factories in China and Brazil, and spreading its wings into other areas including real estate, wind energy, curry powders, fashion and hospitality (two properties including Ramada Resorts).
As he embarks on a new journey, Viju has ambitious plans for the group. “By 2020, we have set a target of Rs 3000 crore turnover for the group,” he tells this reporter on a balmy afternoon at the resort, where the tranquil canal in the background can be seen through the glass room. (“One can only look helplessly at the placid waters. The law doesn’t permit any other activity in the vast canal. I would love to introduce skiing and other water sports. Look at Bali, a small island, which is earning huge foreign exchange, thanks to mostly water sports’ activities,” he remarks).
No Trade Unions
The Kolencherry headquartered group, easily the biggest business group from the state, is also living example of how to do business in Kerala, supposedly notorious for the militant trade unionism. There are over 2,500 employees working for Synthite Industries, but there are no trade unions in the company.
Though it is a big group not much was known about the company or its business till recently. When Synthite started operations back in 1972 by Viju’s father C V Jacob it focused only in one product - black pepper oleoresin. Now it has 500 varieties of spice extractions as well as spice condiments. The companies clients include multinationals like Kellogg’s, Pepsi, Nestle, Unilever and Indian giant ITC. Seventy per cent of the company’s turnover comes from exports. “Availability of the raw materials is the biggest problem we face,” he says. Only now, after the launch of ‘Kitchen Treasures’ range of condiments that the group is getting familiar among the domestic households.
Overseas Foray
This explains Synthite’s decision to set up plants in China (Xingjiang) and Brazil (Sao Paulo). “We can access cheap raw materials and labour from those markets, which in terms makes our products competitive. While from China , Synthite’s value-added spice products are supplied to the entire South Asia and South East Asian region while Brazil takes care of the Latin American region
Philanthropy
The biggest factor for the group’s success perhaps the goodwill of the people from where it operates. The company has provided a comprehensive health insurance to 7000 families at the Kadayirippu village. “We pay the premium for the insurance. We also provide scholarships for the financially backward people and have a housing scheme, all under the CV Jacob Foundation,” he informs.
New-gen in New Business
A new generation from the Synthite family are pursuing their own business interests. For instance, Viju’s younger daughter Neethi, a fashion designer, is soon launching her signature collections under the brand ‘Ezva’.
Coming back to the Ramada Resort, Viju says the hotel will be renamed Rivera Resorts after the franchisee agreement with Ramada gets over in 2018. Of course, the hotel will report profits for the first time in six years this year. Who says business and ethics don’t go together.