Jobaaj Stories
In a significant move to bolster its presence in the organic food market, ITC Limited has announced the acquisition of Sresta Natural Bioproducts Private Limited (SNBPL), the company behind the popular 24 Mantra Organic brand, for Rs 472.5 crore. The deal, structured on a cash-free, debt-free basis, was disclosed through a regulatory filing by ITC.
Strategic Acquisition to Strengthen ITC’s Portfolio
ITC has signed a share purchase agreement to acquire a 100% stake in SNBPL, aligning with its ‘ITC Next’ strategy to build a future-ready portfolio catering to evolving consumer preferences. The acquisition is expected to enhance ITC’s foothold in the high-growth organic products segment, both in India and international markets. The transaction is slated for completion in Q1 of FY 2025-26, subject to mutual agreement.
The deal comprises an upfront payment of Rs 400 crore at closing, with an additional Rs 72.5 crore payable over the next 24 months. This investment is set to fortify ITC’s Foods Business, particularly in the nutrition-led healthy foods category.
About 24 Mantra Organic
Founded by Rajashekar Reddy Seelam, SNBPL operates under the 24 Mantra Organic brand, offering over 100 organic products, including grocery staples, spices, condiments, edible oils, and beverages. The company has a strong international presence, resonating deeply with the Indian diaspora. SNBPL’s vertically integrated supply chain supports sustainable livelihoods for approximately 27,500 farmers across 1.4 lakh acres of certified organic land in 10 Indian states. This robust sourcing network is a key competitive advantage for the brand.
Leadership Perspectives
Hemant Malik, Wholetime Director, ITC Limited, expressed enthusiasm about the acquisition, stating, “We are excited to welcome 24 Mantra Organic into ITC’s Foods Business. Its robust sourcing network and trusted organic portfolio align perfectly with our vision. This acquisition will strengthen ITC’s presence in the high-growth organic products space, both in India and globally.”
Rajashekar Reddy Seelam, Founder & Managing Director of SNBPL, added, “After 21 years of building trusted organic products with Indian farmers, we are thrilled to partner with ITC for the next phase of 24 Mantra Organic’s growth. ITC’s expertise in product development and distribution will help scale our brand, improve farmer livelihoods, and promote ecological stewardship.”
A Step Toward Sustainable Growth
This acquisition underscores ITC’s commitment to sustainable practices and meeting the rising demand for organic and healthy food products. By leveraging 24 Mantra Organic’s established supply chain and ITC’s distribution prowess, the collaboration is poised to redefine the organic food market in India and beyond.
Source: ITC Regulatory Filing
