Press Release | Feb 20. 2025 - 11:53AM
New color blending center supports growth of natural alternatives in India, Asia Pacific and Middle East
Oterra, a global leader in natural colors for the food and beverage sector has inaugurated a new color blending and application center in Kerala, India, to serve the growing Indian, Asia Pacific and Middle East markets.
The facility in Kochi, Ernakulam district, is housed on the site of Oterra’s Akay Natural Ingredients subsidiary. It includes color blending and application labs to support customers in their journey to transitioning to natural colors.
“India and the wider APAC region is a market that is growing in importance for us as consumers increasingly favor products made with natural ingredients,” said Oterra CEO Martin Sonntag.
“India’s strategic location offers easy access to emerging sectors not only in India itself, but also in neighboring regions such as the Middle East. We have customers in all these locations and can now offer them an even better service.”
Previously, the company exported raw materials to Oterra factories in Europe for processing and imported the finished blends for use in India. Now, Oterra can supply directly from this facility some of the most commonly seen color shades used in the food and beverage industry, including yellow, orange, red, and pink made from raw materials such as turmeric, paprika, annatto and red beet.
The company employs 120 workers in both production and laboratories at the site. The raw materials go through a process of spray drying and then mixing for use in food and beverages. The site also includes an innovation and application laboratory with the latest equipment.
“We will be able to support the majority of our customer’s needs from our lab in India for products such as juices, concentrates, hard-boiled candy, jelly gums, biscuits, and cakes,” said Akay Natural Ingredients Director and Head of Operations Manu Raj V.
“Having a local facility allows us to streamline the supply chain and ensure a more consistent supply of high-quality natural colors,” he added. “It also allows us to respond more quickly to customer demands, reducing lead times and improving our ability to meet market needs in India and the surrounding regions.”
According to NATCOL, the Natural Food Colors Association, there is an exciting potential for natural colors in Indian food and drink industry. In its report from July 2024*, it points out that while Indian home cooking is known for its vibrant colors and use of natural fresh ingredients, the packaged goods industry in the country uses nearly exclusively artificial colors. However, changing consumer trends and growing food and drink exports to countries where natural colors are welcomed, could see natural alternatives grow.
Market research company Innova Market Insights** has reported that Indian consumers are increasingly favoring products made with natural and real ingredients. There is a growing demand for food and beverages that are free from artificial additives, preservatives, and processed ingredients, with many seeking out options that feature minimally processed ingredients.
*NATCOL | The outlook for natural colors in India: July 2024
** Innova Market Insights - Category Growth Drivers in India, Dec 2024.
"India’s strategic location offers easy access to emerging sectors not only in India itself, but also in neighboring regions such as the Middle East. We have customers in all these locations and can now offer them an even better service."
More about Akay Group
Oterra™ solidifies APAC footprint with closing of its latest acquisition
Press Release
Oct 18. 2022 - 11:47AM
Oterra announced its intention to purchase Akay in July 2022. Founded in 1995, Akay Group is a leading player in the natural colors and nutraceutical ingredients market. This acquisition is the company’s fourth in under two years and its first within the Asia Pacific region. Based in Kerala, India, Akay has four manufacturing sites in southern India that Oterra will add to its existing production network, as well as 400 employees who will join the team.
The acquisition further strengthens Oterra’s backward integration, mainly in turmeric and paprika. It also provides a strong addition in the nutraceutical ingredients area and will allow the company to offer its customers and market partners a complimentary portfolio to its existing natural food color solutions for dietary supplements.
The two companies have a long-standing connection. Oterra, previously known as Chr. Hansen Natural Colors, was in 1995, part of a joint venture with Akay to produce natural colors from turmeric and paprika. From 2007, Akay continued as an independent company, but Oterra and Akay have kept close ties with each other since Akay was a key supplier to Oterra. Odd Erik Hansen, CEO of Oterra, is excited to welcome Akay’s employees, customers, and market partners. “Akay is a strategic powerhouse in the food ingredients industry and their innovation focus and the expertise the employees bring will be strong additions to Oterra. I look forward to not only offering Oterra’s customers a strengthened natural colors portfolio but also having the opportunity to open the industry’s most comprehensive portfolio to Akay’s existing customers” said Hansen.
The world’s widest portfolio of natural colors gets even stronger: Oterra acquires India’s Akay Group
Press Release
Jul 05. 2022 - 5:31AM
Founded in India in 1995, Akay Group is a leading player in the natural colors and nutraceutical ingredients industry.
The acquisition, Oterra’s fourth in only 14 months, is a win-win for both parties. Oterra will not only strengthen its access to natural colors but also to an attractive product pipeline backed by state-of-the-art manufacturing plants and strong R&D capabilities.
“Akay is a great strategic match for Oterra. It adds to Oterra’s best-known core-strength – natural colors, and its portfolio of nutraceutical products complements Oterra’s existing portfolio of products for natural dietary supplements. The demand for all-natural products in this market is on the rise – and so is Oterra,” said Cees de Jong, Chairman of Oterra.
Based in Kerala, India’s spice hub, Akay serves over 40 countries, has four manufacturing sites in southern India and employs more than 400 people.
Oterra’s acquisition of Akay is an exciting step in its future, according to Dr. Balu Maliakel, Managing Director, AKAY.
“We’re very happy to join the Oterra family. We have a fond shared history, that has left a significant imprint on our business understanding and culture, and we share many of the same values. I am very confident that Oterra’s innovative mindset will bring great value to Akay’s customers. In many ways, this is like a homecoming for us” said Dr. Balu Maliakel.
The two companies have a long-standing connection. Oterra, previously known as Chr. Hansen Natural Colors before its purchase in 2021, was in 1995, part of a joint manufacturing venture with Akay to produce natural colors from turmeric and paprika. From 2007, Akay continued as an independent company, but Oterra and Akay have kept close ties with each other since Akay is a key supplier to Oterra.
“In recent years, Akay has successfully transitioned from a pure colors and flavors business to a leading science-backed botanical ingredients business. We both believe in bringing the best of nature to the world, and we’re happy to welcome the team at Akay to Oterra. We look forward to working together to serve our customers in the future.” said Odd Erik Hansen, CEO, Oterra.
This transaction was signed in July 2022 and is subject to regulatory approval. Investec served as the exclusive financial advisor to Akay Group and its existing shareholders. JSA served as legal counsel to Akay Group. Rothschild&Co acted as financial advisor, Cyril Amarchand Mangaldas and Accura as legal advisors, Alvarez&Marsal as operations and compliance advisor, KPMG as financial and tax advisor, PWC as tax advisors, and Bain&Company acted as commercial advisors to Oterra and EQT.
