Financial Daily from THE HINDU group of publications
Wednesday, Jun 30, 2004
Financial Daily from THE HINDU group of publications Wednesday, Jun 30, 2004 |
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Corporate
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Announcements KCP Biotech to launch natural colours in Aug — Plans foray into industrial enzymes, diagnostics
Sanjiv Shankaran
Chennai , June 29 KCP Biotech aims to start its biotechnology operations by first producing natural colours for the food processing and cosmetics industries, to be followed up with more sophisticated products such as industrial enzymes and diagnostic materials for healthcare. The company, a subsidiary of KCP Ltd, which has a presence in businesses such as cement, engineering and sugar, is to launch natural colours in August. According to Dr A.V. Sivarama Prasad, Vice-President, KCP Biotech, the company collaborated with Central Food Technological Research Institute, which has offered the technology. Dr Prasad said the company would subsequently widen its portfolio to include industrial enzymes, bio-pesticides and bio-fertilisers for agriculture and diagnostics. The company is keeping its mind open on the areas of operations in biotechnology. Colourants themselves find wide application in a range of industries, including food, cosmetics and pharmaceuticals. Other areas could include hybrid seeds and bio-diesel - fuel from plant sources. The company would look at bio-diesel only if the Government comes out with a clear policy on its production and marketing, he said. Dr Prasad said the company's Hyderabad-based plant would start production in August for its customers in the US, Japan, Germany, France and the UK. It would use turmeric, annatto and paprika as raw materials to extract natural colours. The company has invested over Rs 6 crore, partly generated from internal accruals, and is also talking to banks. Dr Prasad said the company planned to enter into contracts with farmers to tie up its raw material requirements. Raw material would be sourced from Andhra Pradesh and Tamil Nadu, and from the North. The natural colours would be extracted from organically cultivated (free from chemical fertilisers and pesticides) crops. The global natural colours business is dominated by a handful of large players, but there is place for more, Dr Prasad said. KCP Biotech has identified a few niches and entered into tie-ups to supply its products. Quality and organic production would be the major selling points. While the products are initially meant for the export markets, there is increasing awareness in the domestic market for natural colours. Over the next two or three years demand is bound to pick up, he felt. The company has also carried out research on co-products that could be generated from the raw material used to extract natural colours.
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