ITC Ltd Acquires 24 Mantra Organic for ₹472.5 Crore
Diversified conglomerate ITC Ltd has announced its acquisition of Sresta Natural Bioproducts Pvt Ltd (SNBPL), the company behind the popular 24 Mantra Organic brand, for ₹472.5 crore. This strategic move aims to enhance ITC’s footprint in the rapidly growing organic packaged foods sector. The acquisition will allow ITC to expand its portfolio and strengthen its market position both in India and internationally.
Details of the Acquisition
In a regulatory filing, ITC confirmed that it has signed a share purchase agreement to acquire a 100% stake in SNBPL. The deal is valued at ₹472.5 crore on a cash-free, debt-free basis, which includes an upfront payment of ₹400 crore at the time of closing and a potential earn-out of up to ₹72.5 crore over the next 24 months. The transaction is expected to be finalized in the first quarter of the fiscal year 2025-26, or at a later date mutually agreed upon by both parties.
SNBPL is known for its extensive range of organic food products, which includes over 100 items such as grocery staples, spices, condiments, edible oils, and beverages. The brand has established a significant international presence, particularly among the Indian diaspora, thanks to its robust organic sourcing and distribution network.
Strategic Alignment with ITC’s Vision
ITC’s acquisition of SNBPL aligns with its ‘ITC Next’ strategy, which focuses on building a future-ready portfolio that meets evolving consumer preferences for health and wellness. Chairman Sanjiv Puri emphasized the importance of this acquisition in fortifying ITC’s presence in the organic products segment. Hemant Malik, ITC’s Wholetime Director, expressed enthusiasm about integrating 24 Mantra Organic into ITC’s Foods Business, highlighting the brand’s strong backend and sourcing capabilities as key assets.
Malik stated, “We are excited to have 24 Mantra Organic as part of ITC’s Foods Business’s portfolio of nutrition-led healthy foods products.” This acquisition is expected to enhance ITC’s offerings in the health-conscious market, catering to consumers’ increasing demand for organic options.
Reactions from SNBPL’s Leadership
Rajashekar Reddy Seelam, the founder and Managing Director of SNBPL, welcomed the acquisition, noting that ITC shares a common vision of promoting sustainable livelihoods for farmers while ensuring healthy lifestyles for consumers. He expressed confidence that ITC’s strengths in product development and distribution will help expand the reach of 24 Mantra Organic to millions of households.
Founded in March 2004, SNBPL reported a revenue of ₹306.1 crore for the fiscal year 2023-24. The acquisition marks a significant step for ITC as it seeks to enhance its portfolio in the competitive organic food market, which continues to gain traction among health-conscious consumers.
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