ITC to acquire 24 Mantra Organic brand for `472.50 crore
New Delhi: Multi-conglomerate ITC will acquire Sresta Natural Bioproducts Private Ltd (SNBPL), which owns the ‘24 Mantra Organic’ brand, in an all-cash deal valued at Rs 472.50 crore, to expand its play in the fast-growing organic food products. ITC has signed a share purchase agreement with SNBPL to acquire a 100 per cent stake in the company, ITC informed in a regulatory filing.
Besides, ITC also announced the acquisition of the remaining 73.5 per cent stake of Mother Sparsh Baby Care, an associate company. ITC had acquired a 26.5 per cent stake in D2C company Mother Sparsh in 2022.
About SNBPL, ITC said it will be an all-cash deal, and the cost of acquisition is up to Rs 472.50 crore on a cash-free, debt-free basis. “The share purchase agreements, comprising Rs 400 crore payable upfront at closing and up to Rs 72.50 crore payable in the next 24 months post Closing,” it said.
SNBPL’s portfolio comprises a wide range of over 100 organic products, spanning branded grocery staples, spices and condiments, edible oils, and beverages, among others. Besides, it has a strong international presence with a deep connection with the Indian diaspora.
The acquisition is “in line with the strategy to augment the company’s future-ready portfolio, the transaction will fortify ITC’s presence and market standing in the high-growth organic products segment in both Indian and overseas markets,” it added.
The domestic organic food products industry offers a “significant opportunity” for growth on the back of increasing health and environmental consciousness, a rise in household incomes and new age distribution channels, said ITC, adding SNBPL is a pioneer and leading player in the organic packaged staples category.
SNBPL has two wholly-owned subsidiaries - Fyve Elements LLC, USA and Sresta Global FZE, UAE.
Over the timeline, ITC said: “The share acquisition is expected to be completed in Q1 of FY 2025-26 or such later date as may be mutually agreed upon by the parties.”
The company further said that this investment is in line with the ‘ITC Next’ strategy articulated by Chairman Sanjiv Puri, which also focuses on building a future-ready portfolio of products that serve evolving consumer needs.
“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,” ITC Wholetime Director Hemant Malik said.
