Viju Jacob, managing director of Synthite Industries.Viju Jacob, took over as managing director of Synthite Industries, the world's largest producer of spice oils and oleoresins earlier this week. Jacob, who dabbles with basketball and badminton in his leisure time is also a sports car aficionado. He shares his diverse interests and the company's growth prospects with Onmanorama the day he was anointed MD of Synthite. Excerpts
Tell us about the trajectory of Synthite group?
In 1972, my father started Synthite Industrial Chemicals, later re-branded as Synthite Industries Ltd. Black pepper was the first product. Every year we started new products like ginger, nutmeg and paprika. Today, we produce over 500 varieties with factories and offices across the globe. The last factory we set up at Ongole in Andhra Pradesh. Our ambition is to be a Rs 3,000 crore turnover company by 2020.
Your education was mostly based in Kerala. Has that ever been a disadvantage in the age of Harvard business graduates?
What I always tell the new age entrepreneurs is that, education is important but practical knowledge is more important. Studying in Harvard or other great places is very good, provided you have the practical experience. Theory will not suffice for the practical side.
Everybody knows how to draw x-axis and y-axis or to use an excel sheet. When it comes to business application you should know the practicality in running an organization. There are lot of people who pass out from big universities, but not everyone is successful.
I started in 1983. I used to look after the factory as well as take care of marketing. Since I was already working from school days, the knowledge was not lacking.
You are into hospitality, real estate and power generation. Why did you opt to diversify?
Actually starting hotels Ramada and Riviera happened by default. We started with a plan to build apartments, but then recession started. Since we already owned the land, we decided to enter the hospitality industry.
Power generation was started because 80 percent of the energy produced is used in our factory and the remaining 20 percent we are giving back to the state. In Tamil Nadu, Kerala and Karnataka, we have windmill based power generation units. We are looking forward to a couple of new ventures, it is all in the nascent stage so they cannot be disclosed now.
Marigold extraction in India was pioneered by Synthite, can you tell us more about it?
Marigold extraction was initially planned as a venture with a Mexican company. But that business didn’t break through. Then we got into a deal with a US-based company and that took us a long way. The initiative resulted in employment for over 14,000 farmers.
We also have several sustainable programs like backward integration, farm to fork etc. We give the seeds and manure to farmers, we also guide them to use pesticides in a controlled manner.
Synthite is known for not having trade union. How did you manage such a feat in a state like Kerala?
We haven’t had trade unions because we look after our laborers as human beings. All their needs are being met here. Our staff are provided with pension scheme, housing schemes and everybody is insured.
Viju interacting with staff at Ramada, Cochin.What are the philanthropic efforts undertaken by you?
Philanthropy is one of my hobby. A certain amount is dispersed every year through CVJ foundation for helping others. We support the needy in areas related to health, housing and education. I am a member of the ‘care and share’ group. Mamooty is a patron of care and share. The group has sponsored heart surgeries for children aged between 1-15 years. I am also one of the directors' for ‘light and life,’ which supports children suffering from cancer.
One landmark moment in your career?
Six years back we took a decision to assign all the directors different portfolios. Mine was marketing of Synthite products as well as looking after Ramada and Riviera. I was very successful in both areas. With the help of this protocol change, the confusion of who is taking care of what was over.
As the other directors also produced good results in their respective portfolios, the company started growing in every aspect.
What are the challenges the Synthite group faces?
The challenge is in deciding what product to innovate, finding the next space to venture and planing the company's diversification. Getting to tackle challenges is the good part of being a businessman. Every other day is a challenge that needs to be overcome.
The car crazy Viju with one of his priced collection, a jaguar.Tell us about your passion for cars?
I have been in love with cars from my school days. When I joined Synthite my father gifted me a new Fiat car. During my second year in the company, he got me a Mercedes Benz on my birthday. From then on my passion for cars have seen no end. I have used most cars in the market, presently I m using a BMW i8. Lamborghini, Mercedes s-class and SLK sports coupe are my other favorites.
On his family
Family is basic, success always comes with family support. My wife Mini has been understanding and takes care of responsibilities in my absence. I have two daughters, Neelam and Neethi. Neelam heads marketing for Synthite while Neethi heads our new fashion brand, 'Ezva'. The youngest member is Neelam and Dominic's daughter Taasha.
