ITC Acquires 24 Mantra Organic in INR 472.5 Crore Deal

Sresta Natural Bioproducts Private Limited, which operates under the more recognizable name of 24 Mantra Organic, has been acquired by ITC Limited in a deal that could be worth INR 472.5 crore. Sresta is a leader in the organic foods space, with a strong product portfolio and an extensive distribution network, which will now be available to ITC. This acquisition is iron-clad and will happen on a cash-free, debt-free basis. ITC today also released details of how much money will change hands: INR 400 crore upfront, and another INR 72.5 crore that is linked to how Sresta performs over the next two years.

By picking up 100 percent of the share capital of SNBPL, ITC makes its first big move into the organic FMCG sector. This is the category of fast-moving consumer goods that have an organic label. Increasingly, this is a health-driven market where consumers are looking for clean-label alternatives to what they used to buy.

A Pioneer in Organic Food with a Farm-to-Fork Model

Established more than 20 years ago, SNBPL has been a significant player in India’s organic food arena, with more than 100 offerings that span the gamut from staples, spices, and oils to condiments and beverages. What differentiates 24 Mantra Organic, however, is its farm-to-fork integrated model that ensures the organic integrity of products right from the farm to the consumers' table.

The company procures from a certified network of about 27,500 farmers across ten states in India. This connection with farming communities allows it not only to maintain a steady quality of its products but also to ensure that they are produced through sustainable agricultural practices. The company’s status with that diaspora gives it a level of international cachet that few other organic brands can claim.

Synergy with ITC’s Vision for Nutrition and Sustainability

Hemant Malik, Wholetime Director at ITC, sees the acquisition as a seamless fit within ITC’s broader food strategy focused on nutrition and sustainability. The robust backend and supply chain developed by 24 Mantra Organic were highlighted as major strengths that align with ITC’s goals of offering trusted, health-led products to consumers.

This acquisition complements ITC's earlier investments in the food sector, including its stake in frozen food firm Ample Foods. Increasing consumer demand for natural and organic offerings makes 24 Mantra Organic an ideal candidate to accelerate ITC's ambitions in both the Indian market and overseas segments.

After the announcement, ITC's shares closed at INR 427.25, which is a 0.73 percent increase on the BSE. Investors are responding to the announcement in a positive manner. The founder of 24 Mantra Organic, Rajashekar Reddy Seelam, is optimistic about the outcome of the brand's shift to the ITC umbrella. He views this transition as a fresh opportunity to broaden the brand's reach after more than 20 years of establishing the 24 Mantra Organic name in the marketplace.