Oterra acquires Akay Group, solidifies APAC footprint

Oterra, leading supplier of natural colors with the widest portfolio in the industry has announced the acquisition of India’s Akay Group, a player in the natural colors and nutraceutical ingredients market.

The Danish company announced its intention to purchase Akay in July of 2022. The acquisition which Oterra first announced in July 2022, is the company’s fourth in under two years, and its first within the Asia Pacific region.

Founded in 1995, Akay is based in Kerala, India, with four manufacturing sites in southern India that will be added to Oterra’s existing production network. Akay’s 400 employees will join Oterra’s team.

The acquisition further strengthens Oterra’s backwards 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 colors 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 kept close ties with each other since Akay was a key supplier to Oterra.

Odd Erik Hansen, CEO of Oterra, says: “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.”