Diversified conglomerate ITC Ltd on Thursday announced that it will acquire Sresta Natural Bioproducts Pvt Ltd (SNBPL), the company behind the 24 Mantra Organic brand, for Rs 472.50 crore, in a move to strengthen its presence in the high-growth organic packaged foods space.
According to a regulatory filing, ITC has signed a share purchase agreement to acquire a 100% stake in SNBPL, which is engaged in manufacturing and selling a wide portfolio of organic food products under the 24 Mantra Organic brand.
“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 said, as reported by PTI.
SNBPL offers over 100 organic products, including grocery staples, spices, condiments, edible oils, and beverages. It also enjoys a significant international presence, especially among the Indian diaspora, due to its established organic sourcing and distribution network.
“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,” ITC noted in its filing.
The deal, valued at up to Rs 472.50 crore on a cash-free, debt-free basis, includes an upfront payment of Rs 400 crore at closing and a potential earn-out of up to Rs 72.50 crore over the subsequent 24 months.
ITC stated that the acquisition aligns with its ‘ITC Next’ strategy, spearheaded by Chairman Sanjiv Puri, which emphasizes building a future-ready portfolio catering to evolving consumer preferences for health and wellness.
“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,” said ITC Wholetime Director Hemant Malik.
Rajashekar Reddy Seelam, founder and Managing Director of SNBPL, welcomed the deal, saying, “ITC shares a common vision to promote sustainable livelihoods for farmers and ensure healthy lifestyles for consumers. We are confident that ITC’s strengths in product development expertise and distribution strength across channels will help in taking 24 Mantra Organic to millions of homes.”
SNBPL, which was incorporated in March 2004, recorded a revenue of Rs 306.1 crore in FY 2023-24.