ITC Strengthens Its Organic Market Presence

In a strategic move to bolster its position in the organic packaged foods sector, ITC Ltd has announced the acquisition of Sresta Natural Bioproducts Pvt Ltd (SNBPL), the parent company of the renowned 24 Mantra Organic brand, for a whopping Rs 472.50 crore.

A Strategic Acquisition

This acquisition, as per the regulatory filing, involves ITC purchasing a 100% stake in SNBPL, a company celebrated for its extensive range of organic food products. "This aligns with our strategy to enhance our future-ready portfolio and strengthen our footprint in both domestic and international organic markets," ITC stated.

24 Mantra Organic's Global Footprint

With over 100 organic products, including staples, spices, and beverages, 24 Mantra Organic has not only made a mark in India but also enjoys a significant presence abroad, particularly among the Indian diaspora, thanks to its robust organic sourcing and distribution network.

Deal Structure and Future Prospects

The transaction, valued at Rs 472.50 crore, includes an upfront payment of Rs 400 crore and a potential earn-out of up to Rs 72.50 crore over the next 24 months. ITC's Chairman Sanjiv Puri views this as a step forward in the company's 'ITC Next' strategy, focusing on health and wellness.

Leadership Perspectives

"We are thrilled to welcome 24 Mantra Organic into ITC's family. Their strong backend and sourcing network complement our vision for healthy, nutrition-led foods," remarked Hemant Malik, ITC Wholetime Director. SNBPL's founder, Rajashekar Reddy Seelam, expressed confidence in ITC's ability to scale the brand to new heights.