The ITC is set to buy 100% of share capital of Sresta Natural Bioproducts, the company behind the 24 Mantra Organic brand. The deal is said to be valued around Rs 472.50 crore, and is expected to be completed in this year’s first quarter. It can take time, depending on mutual agreement between the two companies.
The decision has been taken as part of ITC’s plan to expand its range of consumer-focused products. The company said the deal will strengthen its position in the fast-growing organic products market, both in India and abroad.
The total amount of the deal is up to Rs 472.50 crore, on a cash-free and debt-free basis. Out of this, Rs 400 crore will be paid when the deal closes, and the remaining Rs 72.50 crore might be paid within the following 24 months.
Sresta Natural Bioproducts offers more than 100 organic products. These include grocery items, spices, cooking oils, drinks, and more. The brand is also well-known internationally, especially among Indians living overseas.
ITC also said this investment supports its ‘ITC Next’ strategy, which aims to create a strong portfolio of products that meet changing consumer needs.
Praising the 24 Mantra Organic brand, ITC Wholetime Director Hemant Malik said that it has a reliable supply system and offers trusted organic products. He said that it is a valuable addition to ITC’s food business, especially in the healthy and nutrition-focused segment.
The founder and Managing Director of SNBPL, Rajashekar Reddy Seelam, told PTI that the two companies share the same goals which are supporting farmers and promoting healthy living. He believes ITC’s experience in developing products and its wide distribution network will help the 24 Mantra Organic brand grow and reach more households.
Sresta Natural Bioproducts was started in March 2004 and earned Rs 306.1 crore in revenue during the 2023–24 financial year.