ITC Ltd has signed a share purchase agreement to acquire 100 per cent stake in a company that manufactures and markets “24-Mantra Organic” brand of organic staples in India and the US for ₹472.5 crore.
The acquisition is in line with the “ITC Next” strategy promoted by the company chairman Sanjiv Puri that focuses on building a future-ready product portfolio that appeals to the evolving consumer needs.
The Indian organic food market (domestic and exports) is currently estimated to be ₹10,000 crore with a high growth potential, given the low penetration levels domestically as well as globally and the growing consumer preference towards natural and organic food products.
The segment is an area of interest for ITC given the strong synergistic linkages to the company’s existing branded packaged foods portfolio.
The portfolio of “24-Mantra Organic” owner Sresta Natural Bioproducts Private Limited, established by Rajashekar Reddy Seelam 21-years ago, comprises 100-plus organic products spanning branded grocery staples, spices and condiments, edible oils among others.
SNBPL earned a revenue of ₹306.1 crore in FY24, half of which came from the US where the company has its own distribution network.
ITC said in a statement that SNBPL’s vertically integrated supply chain includes 27,500 farmers spread across 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, ITC added.
Commenting on the acquisition, Hemant Malik, wholetime director of ITC, said 24 Mantra Organic will fortify ITC’s presence and market standing in the high growth organic products space, in both Indian and overseas markets.
In addition to SNBPL, ITC also announced that it would acquire the balance 73.5 per cent stake of Mother Sparsh Baby Care Pvt Ltd in two tranches by Q1FY27 for ₹81 crore.