ITC Acquires Organic FMCG Brand 24 Mantra Organic for ₹472.5 Crore
In a significant move to strengthen its position in the rapidly growing organic foods segment, ITC Limited announced on Thursday, April 17, 2025, that it has signed a definitive agreement to acquire 100% share capital of Sresta Natural Bioproducts Private Limited (SNBPL), the company behind the renowned '24 Mantra Organic' brand.
Acquisition Details
The deal, valued at up to ₹472.5 crore, will be executed on a cash-free, debt-free basis. According to the terms:
- ₹400 crore will be paid upfront at the time of closing
- An additional ₹72.5 crore may be paid over the next 24 months, subject to customary adjustments and performance-related conditions
Following the announcement, shares of ITC Ltd ended at ₹427.25 on the BSE, reflecting a gain of ₹3.10 or 0.73%.
About 24 Mantra Organic
Sresta Natural Bioproducts Private Limited is a pioneer in India's organic foods market, offering a fully integrated 'Farm to Fork' traceability system. The company has established itself as a leading player in the organic packaged staples category in India.
Key highlights of SNBPL include:
- A diverse portfolio of over 100 organic products including branded grocery staples, spices, condiments, edible oils, and beverages
- Strong international presence with deep connections to the Indian diaspora
- A vertically integrated supply chain supporting sustainable livelihoods for approximately 27,500 farmers
- Certified organic farming across approximately 1.4 lakh acres of land in 10 states
This robust network of farmers and certified organic sourcing capabilities represents a significant competitive advantage for the company in the growing organic foods market.
Strategic Importance for ITC
This acquisition marks a strategic expansion for ITC into the high-growth organic packaged foods segment. The company continues to diversify its portfolio while focusing on nutrition-led healthy food products.
Hemant Malik, Wholetime Director of ITC, expressed enthusiasm about the acquisition, stating, "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."
He further added, "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."
Future Outlook
With organic food consumption on the rise globally and increased health consciousness among consumers, this acquisition positions ITC strategically to capture growth in this premium segment. The deal also aligns with ITC's ongoing efforts to expand its food business beyond traditional categories.
Rajashekar Reddy Seelam, Founder & Managing Director of SNBPL, commented on the acquisition: "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."
This acquisition follows ITC's recent investment of ₹131 crore in Ample Foods, further highlighting the company's commitment to expanding its food business portfolio and addressing changing consumer preferences for healthier, premium food options.
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