ITC Acquires 24 Mantra Organic in ₹472.5 Crore Deal

21 Apr 2025 , 01:47 PM

ITC Limited has entered a binding agreement for the acquisition of 100% of the Sresta Natural Bioproducts Private Limited (SNBPL) equity share capital at the company popularly known through the ’24 Mantra Organic’ brand.

The implied cost of the acquisition is to the extent of ₹472.5 crore of which ₹400 crore will be payable on payment terms at closing of the transaction. A further amount of up to ₹72.5 crore will be payable over the subsequent 24 months, depending on normal closing adjustments and performance-linked milestones.

The acquisition is being undertaken on a debt-free and cash-free basis to facilitate a financially clean transfer of the business for ITC. The strategic purchase is ITC’s entry into the fast-emerging organic packaged foods space, reinforcing its established position in the health and well-being category.

24 Mantra Organic is a front-runner brand in India’s organic food industry and has a portfolio of more than 100 certified organic products across grocery staples, edible oils, spices, condiments, and beverages.

SNBPL follows a completely integrated “farm to fork” traceability model that ensures transparency, quality, and safety in the organic food procurement and processing chain.

The firm has established a robust network of farmers, engaging with close to 27,500 organic-certified farmers who grow about 1.4 lakh acres of certified land in 10 Indian states.

The acquisition also provides ITC with access to SNBPL’s strong sourcing strengths and highly integrated supply chain that is in line with sustainable agricultural practices. 24 Mantra Organic has a well-established international footprint among Indian expats, which will underpin ITC’s global ambitions in organic foods.

Hemant Malik, Whole-time Director of ITC, said that the acquisition will further add ITC’s food business portfolio of reliable, nutrition-driven offerings in the high-potential organic space. Malik also accepted that 24 Mantra Organic’s proven backend and sourcing network would be pivotal to building ITC’s footprint in both local and international markets.

Rajashekar Reddy Seelam, Managing Director and Founder of SNBPL, had confidence in the capabilities of ITC to spearhead the brand’s next phase of growth, after establishing it in the last 21 years through Indian farmers. This acquisition aligns with ITC’s long-term strategy of expanding its foods business through innovation, sustainability, and consumer trust in quality organic offerings.