1. R
WWW. SPICES HANDBOOK - 2016
20
Sustainability and Business Process
Reengineering - The Future Drivers of
Oleoresin Industry
Jainendran.G, A Freelancer in the area of Spices and Oleoresins.
Currently apart from pursuing Executive Post Graduate
Management program with IIM Kozhikode, he is setting up
projects in Contract farming, Sustainability, Oleoresin and Fruit
processing projects in India for global leaders. With more than
24 years of experience in Agribusiness and FMCG industry, his
previous full time assignment was with M/s. Synthite Industries
as Head- Farmtech division and Unit Head- Manufacturing plant
–Harihar (Karnataka), India. He can be reached at
jainendran@hotmail.com
History of spice trading perfectly matches with the
history of modern age, May 21st 1498, the first ever
sea voyage from Europe to India (Kozhikode, Kerala) by
Vasco Da Gama and his crew. As the part of spreading
Europe’s trade network across seven seas, India’s
fortune was started with pepper from Kerala – A typical
economics linked with politics over hundreds of years
which had highly controlled and restricted supply with
great demand. The ingredient value streams in all
major spices fall into Essential oils and Oleoresins apart
from some soluble and insoluble fibres. Evolution and
commercialisation of spice ingredients took another 500
years, supported by Indian R & D and technology, mostly
triggered by the global demand of black pepper and
its value added derivatives, and rapidly got extended
to all other spices. Even at a time when ground spices
and pastes where the choice of kitchens and industrial
seasonings, the preference for extracted oleoresins
emerged as a way to minimise cost and supply chain
challenges to export markets which in turn shifted to
stability, consistency and standardisation. Further in
21st century, the processing preferences and focus
shifted towards residues and contaminant control. The
way ahead is with cost efficiency and sustainability.
By definition, Oleoresins are the active ingredients
in spices that provide the flavour and taste, a natural
mixture of essential oils and non-volatile matter such
as resins, fixed oils and so on .In current scenario
oleoresins are further segmented in to natural
pigments, essential oils, speciality extracts and
oleoresins from spices, herbs, fruits and vegetables by
various process which includes solvent extraction, steam
distillation, super critical extraction and enzyme-assisted
extraction. Majority of the spice extracts are used by
flavouring and seasoning industry; while an increasing
consumption trend is noticed in the natural food colour,
nutraceuticals, food preservation, cosmetics and similar
domains.
PROCESSES
Major processing methods employed by the extraction
industry are illustrated.
Steam distillation – Cleaned spices are pre-processed
and distilled in food grade stainless steel vessels ,the
active volatiles are separated after cooling the oil-hot
water mixture based on specific gravity either by gravity
or centrifugal separation techniques.
Jainendran.G, Freelancer in the Area of Spices and Oleoresins
Key words: Oleoresins, spices, sustainability, spice processing technologies

2. R
WWW. SPICES HANDBOOK - 2016
22
Steam distillation plant
Solvent extraction – Pre-processed raw materials are
exposed to approved organic solvents in a confined
vessel or continuous extractor, followed by removal
of solvents by appropriate distillation methods. The
residual solvent levels are carefully controlled to trace
levels as set by respective regulations.
Solvent extraction plant - batch type
Solvent extraction plant - continuous type
Supercritical extraction- It is an extraction technology of
modern era in which carbon dioxide gas at supercritical
state is used as the solvent. This method achieves
extracts completely free of organic solvent and residues.
It is processed at relatively lower temperatures and
achieves almost true flavour profile of the spices being
processed.
Enzyme assisted extraction – An enhanced form of
solvent extraction, in which active enzymes – native
or derived – were used to break cellulolytic material,
exposing the active ingredients to solvents quickly, is
being practiced in some cases for optimising process
efficiency, yields and product rheology.
Supercritical fluid extraction plant
CURRENT BUSINESS SCENERIO
Global market size of 40 Million USD with a growth of
minimum 3-5 % YOY, in which India contributes 8% YOY
in exports where as domestic demand grows at 20-25
% due to the change in food habit trends and increased
spending levels and rapid urbanisation. Leading
product range includes 7000 MT of Paprika, 5000 MT
(Basis of 10%Capsaisin) of Capsicum,1300 MT of Black
pepper and 300 MT of Turmeric (95% Curcumin),India
is historically leading with the first position in volume
and value of global oleoresin supply, recent trends
and eco system are not much favourable for India as
a processing hub, due to the migration of processing
facilities to other countries where the raw material

3. R
WWW.SPICES HANDBOOK - 2016
23
is produced. China’s entry to Oleoresin market mainly
in Paprika, Capsaicin and Marigold oleoresin leads to
healthy competition for economies of scale in major
volume groups, still the right raw material, knowledge
pool and ability to meet new tailor made requirements
by the support of research &development, innovation
and skilled process force are the key driving factors that
retains India in first position.
FUTURE
Backward integration of seasoning and flavouring
companies through mergers, acquisitions and strategic
partnerships in India and forward integration of
oleoresin companies in the world seasoning and
flavouring are going to be the key business drivers for
the future. In a summary, consolidation of Oleoresins
and flavouring business community can only sustain the
industry growth at a reasonable rate – while the other
benefit of this is going to be the economies of scale.
Agriculture sustainability initiatives and business
process reengineering are the two core areas which the
future of industry is dependent on.
1. SUSTAINABILITY
The challenge is majorly with small and marginal
farmers in spice growing regions which predominantly
cater the entire spice trade, collaboration with bodies
like SSI (Sustainable Spice Initiative) and WSO (World
spice Organisation) will be able to take up such
challenges.
Raw material

4. R
WWW. SPICES HANDBOOK - 2016
24
All leading players have initiated addressing the
regulatory requirements related to residues and
contaminants control, farmer awareness training
programs on soil testing, over dosage in fertigation,
application of right molecules in right time, proper
post harvesting practices and traceability. Government
mechanism in spice producing countries are not very
active in bringing controls over the un-approved
pesticides, improving yields and inculcating a culture of
good agricultural practices.
Recently, the innovations happening in linking
Agriculture, farm mechanisation and Information
Technology is going to be the controlling factor in the
area of agriculture sustainability not only for meeting
regulatory requirements of end-user nations but also for
sustaining quality produce and farming culture in spice
producing countries.
2. BUSINESS PROCESS REENGINEERING
Only a minor portion of profit realisation is being
reinvested in the focus areas for future apart from
capacity expansion and focusing the manufacturing
in the raw material growing regions. It’s high time for
the existing operators to move out of the box for cost
reduction and improving efficiency.
a, Raw material sourcing through agents and
aggregators : Sourcing through agents and aggregators
need to be shifted to more of famers cooperatives and
associations facilitates by IT enabled platforms.
b, Active ingredient loss in the case of temperature
sensitive raw materials in the pre-processing and
extraction process to be minimised
c, Right scientific and process engineering developments
to be established in the areas of particle size, extraction
efficiency and wastage minimisation
d, Effective By product streams utilisation and market
exploration by meeting regulatory requirements need to
be explored.
e, Development of high yielding verities of raw materials
and development of proper agricultural practices in
association with researchers, academicians, private seed
producers and universities.
f, Reverse engineering by coordinating with buyer
community to standardise final product which will
avoid inventory and supply chain challenges.
g, Currently the manufacturing process depend on
manual involvement to a great degree, which need to
be more standardised for consistency by automation.
h, Applications of artificial intelligence in product
development, testing comparison ,process and product
development
I, Digitalisation in B2B marketing and sales functions as
the next generation opportunity.
2020 AND BEYOND
Leading oleoresin businesses have already started
investing in bulk contract farming systems with
sustainability focus around the globe and started
moving their manufacturing facilities to growing
areas, Sustainability and key process change initiatives
with effective utilisation of by-product streams are
facilitating superior product quality with minimum
cost .After the major consolidation to avoid one stage
operating margin , eventually the oleoresin industry will
be the part of flavour / seasoning industry. However,
small time processors and new ventures would also
survive depending on how well they differentiate
themselves against the large processors, in terms of raw
materials development and innovation.