In an exciting development for the organic food industry, ITC Limited has announced its intention to acquire 100% of the share capital of Sresta Natural Bioproducts, the parent company of the renowned 24 Mantra Organic brand. Valued at approximately Rs 472.50 crore, this significant deal is projected to finalize in the first quarter of the current year, pending mutual agreements between the two parties.

Strengthening ITC’s Organic Product Portfolio

This strategic acquisition aligns with ITC’s vision to broaden its consumer-oriented offerings. The company aims to bolster its presence in the rapidly expanding market for organic products, catering to both domestic and international consumers.

• Deal Details:
  • Total valuation: Rs 472.50 crore (cash-free and debt-free)
  • Initial payment upon closing: Rs 400 crore
  • Remaining balance: Rs 72.50 crore to be settled within 24 months

The Rise of 24 Mantra Organic

Sresta Natural Bioproducts boasts a diverse range of over 100 organic products, including groceries, spices, cooking oils, and beverages. The 24 Mantra Organic brand is particularly popular among the Indian diaspora, reflecting its strong international presence.

ITC has emphasized that this investment is integral to its ‘ITC Next’ strategy, designed to build a robust portfolio that adapts to evolving consumer preferences.

Expert Insights on the Acquisition

Hemant Malik, ITC’s Wholetime Director, commended the 24 Mantra Organic brand for its reliable supply chain and commitment to quality. He noted that this acquisition represents a significant enhancement to ITC’s food division, particularly in the health-conscious market.

Rajashekar Reddy Seelam, the founder and Managing Director of Sresta Natural Bioproducts, expressed optimism about the collaboration. He highlighted the shared objectives of both companies in supporting farmers and promoting wellness. Seelam believes ITC’s extensive experience in product development and its vast distribution network will significantly elevate the 24 Mantra Organic brand, making it accessible to a broader audience.

A Brief History of Sresta Natural Bioproducts

Founded in March 2004, Sresta Natural Bioproducts reported a revenue of Rs 306.1 crore for the financial year 2023-24. This acquisition marks a pivotal moment for both companies as they embark on a journey to enhance the organic product landscape in India and beyond.

In conclusion, this acquisition not only signifies ITC’s commitment to expanding its organic offerings but also reinforces the growing trend of health-focused consumerism. With the combined strengths of both companies, the future looks promising for 24 Mantra Organic and its extensive range of organic products.