ITC Ltd on Thursday said it has signed a Share Purchase Agreement to acquire 100% of the share capital of Sresta Natural Bioproducts Pvt. Ltd (SNBPL), which manufactures and sells organic packaged food products under the ‘24 Mantra Organic’ brand in the domestic and international markets.
ITC has paid a consideration of up to ₹472.50 crore on a cash-free, debt-free basis, subject to customary adjustments as set out in the Share Purchase Agreements, comprising ₹400 crore payable upfront at closing and up to ₹72.50 crore payable in the next 24 months after closing.
Raj Seelam (founder) will assist in the transition and remain associated with the business for two years. The transaction is expected to be completed in Q1 FY26.
SNBPL’s portfolio comprises over 100 organic products spanning branded grocery staples, spices and condiments, edible oils, beverages, etc.
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The government has been actively promoting the organic foods industry through various schemes and initiatives, aiming to improve the livelihood of farmers, boost exports, enhance packaging/ marketing of products and ensure food security, while promoting sustainable agriculture. India is also well-positioned to become a global hub for organic sourcing, with existing strengths in areas like rice and organic tea, ITC said in a filing on Thursday.
The Indian organic market (domestic and exports) is estimated to be ₹10,000 crore.
Strengthening organic portfolio
The acquisition reinforces ITC’s commitment to build a portfolio of future-facing winning brands that addresses the evolving needs of Indian consumers, and will unlock value creation opportunities by leveraging ITC’s institutional strengths to drive synergies in areas such as product development & innovations, sourcing, manufacturing, supply chain and distribution, the company added.
This investment aligns with chairman Sanjiv Puri’s ‘ITC Next’ strategy.
Hemant Malik, wholetime director, ITC, stated, “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. 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”.
Last month, the hotels-to-cigarettes conglomerate announced the acquisition of Century Pulp and Paper (CPP) from Aditya Birla Real Estate Ltd for a lump sum consideration of ₹3,498 crore.
In February, ITC announced plans to acquire the frozen food and ready-to-cook foods brand Prasuma.
ITC sells kitchen staples, snacks, and personal care products, among others.
Separately, ITC also said it has signed definitive agreements to acquire the balance 73.5% stake in Mother Sparsh Baby Care Pvt. Ltd (‘Mother Sparsh’), an associate company, operating in the premium ayurvedic and natural baby care space. The baby care segment in India is under-penetrated and under-served providing ITC the opportunity to scale up and build a category of the future, the company said.
ITC first invested in the company in 2021.
