ITC's Strategic Acquisition: Expanding into Organic Market

ITC acquires Sresta Natural Bioproducts, owner of the '24 Mantra Organic' brand, for Rs 472.50 crore. This strategic move aims to strengthen ITC's position in the organic food market. The acquisition aligns with ITC's future-ready portfolio enhancement strategy and is expected to finalize by FY 2025-26.

Multi-conglomerate ITC has announced its acquisition of Sresta Natural Bioproducts, which owns the well-known '24 Mantra Organic' brand, in a significant all-cash deal valued at Rs 472.50 crore. This strategic acquisition aims to bolster ITC's presence in the burgeoning organic food sector, both in India and internationally.

According to ITC's regulatory filing, a share purchase agreement has been signed to secure a 100 per cent stake in Sresta Natural Bioproducts Private Limited (SNBPL). This aligns with the company's goal to expand its future-ready product portfolio and tap into the high-growth organic products segment.

The domestic organic food industry presents a significant opportunity for growth, driven by rising health and environmental awareness and increased household incomes. The share acquisition is expected to be completed in Q1 of FY 2025-26, furthering ITC's 'Next' strategy for portfolio enhancement.

(With inputs from agencies.)