ITC to acquire organic FMCG staples brand 24 Mantra Organic for ₹472.5 crore

Diversified group ITC Limited on Thursday (April 17) said it has signed a definitive agreement to acquire 100% of the share capital of Sresta Natural Bioproducts Private Limited (SNBPL), the company behind the ‘24 Mantra Organic’ brand, for a consideration of up to ₹472.5 crore. The acquisition marks a significant move by ITC to expand its footprint in the fast-growing organic packaged foods segment.

Under the terms of the deal, ITC will pay ₹400 crore upfront at the time of closing, with an additional amount of up to ₹72.5 crore payable over the next 24 months, subject to customary adjustments and performance-related conditions. The transaction is being executed on a cash-free, debt-free basis.

Sresta Natural Bioproducts Private is a pioneer in the domestic organic foods space, providing fully integrated ‘Farm to Fork’ traceability and is a leading player in the organic packaged staples category in India.

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Sresta Natural Bioproduct’s portfolio comprises a wide range of 100+ organic products spanning branded grocery staples, spices and condiments, edible oils, beverages, etc. SNBPL has a strong international presence with a

deep connection with the Indian diaspora.

SNBPL’s vertically integrated supply chain promotes sustainable livelihoods for its network of approximately 27,500 farmers spread across approximately 1.4 lakh acres of certified organic land in 10 states. The strong network of farmers and certified organic sourcing capability are key sources of competitive advantage for the company.

Hemant Malik, Wholetime Director of ITC, said, “We are excited to have 24 Mantra Organic as part of ITC’s Foods Business’s portfolio of nutrition-led healthy foods products. 24 Mantra Organic has built a robust backend and sourcing network, which is core to its trusted organic products portfolio.

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Aligning with national priorities, we are confident that 24 Mantra Organic will fortify ITC’s presence and market standing in the high-growth organic products space, in both Indian and overseas markets.”

Rajashekar Reddy Seelam, Founder & Managing Director, SNBPL, stated, “After 21 years of partnering with Indian farmers to create trusted organic products, we are excited that ITC will be driving the next phase of growth for 24 Mantra Organic.”

Shares of ITC Ltd ended at ₹427.25, up by ₹3.10, or 0.73%, on the BSE.