Oterra has officially unveiled a cutting-edge color blending and application center in Kochi, India. This strategic move is designed to enhance Oterra’s ability to meet the escalating demand for natural ingredients across India, the Asia Pacific, and the Middle East. By providing locally manufactured, vibrant color solutions, Oterra is poised to make a significant impact on these burgeoning markets.
Oterra, the premier global leader in natural colors for the food and beverage industry, has inaugurated a new state-of-the-art color blending and application center in Kerala, India. This facility aims to cater specifically to the increasing markets in India, the wider Asia Pacific, and the Middle East.
The newly established facility, located in Kochi’s Ernakulam district, is strategically housed on the premises of Oterra’s Akay Natural Ingredients subsidiary. This center features advanced color blending and application laboratories designed to support customers as they transition to using natural color options in their products.
“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,” stated Oterra CEO Martin Sonntag.
He further emphasized the strategic advantages that India’s location provides. “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, Oterra’s operations involved exporting raw ingredients to its factories in Europe for processing and then importing finished blends back into India. With the establishment of this new facility, Oterra can now directly supply a variety of commonly used color shades in the food and beverage sector. These shades include yellow, orange, red, and pink, derived from natural sources such as turmeric, paprika, annatto, and red beet.
The Kochi facility currently employs 120 workers and boasts both production and laboratory capabilities. The raw materials undergo a meticulous spray drying process followed by blending, making them suitable for diverse applications in food and beverages. Additionally, the site features an innovation and application laboratory equipped with state-of-the-art technology.
“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,” explained Manu Raj V, Director and Head of Operations at Akay Natural Ingredients.
Moreover, he mentioned the efficiency gained by this local investment: “Having a local facility allows us to streamline the supply chain and ensure a more consistent supply of high-quality natural colors. It also allows us to respond more quickly to customer demands, reducing lead times and enhancing our ability to meet market needs in India and the surrounding regions.”
According to the Natural Food Colors Association (NATCOL), there lies exciting potential for natural colors in the Indian food and beverage industry. A report published in July 2024 points out that while Indian home cooking is renowned for its vibrant use of natural ingredients, the packaged goods sector in the country predominantly relies on artificial colors. However, the shifting consumer trends and increasing food and drink exports to markets that embrace natural colors position Oterra well for future growth.
Market research firm Innova Market Insights has identified a burgeoning demand among Indian consumers for products made with natural, healthy ingredients. This shift in consumer preference indicates that there is a significant market for food and beverages free from artificial additives, preservatives, and heavily processed components. Many consumers are actively seeking products that utilize minimally processed ingredients.
