ITC to acquire Sresta Natural Bioproducts (SNBPL), engaged in the business of manufacture and sale of organic packaged food products under the ‘24 Mantra Organic’ brand in the domestic as well as in international markets for ₹472.50 crore.
The transaction includes an upfront payment of ₹400 crore, with a further ₹72.5 crore payable over two years, contingent on the company meeting performance milestones.
It has signed a Share Purchase Agreement to acquire 100% of the share capital of Sresta Natural Bioproducts (SNBPL), ITC said in a regulatory filing.
Sresta Natural Bioproducts is a fully integrated ‘Farm to Fork’ traceability and a player in the organic packaged staples category in India.
SNBPL’s portfolio comprises a wide range of 100+ organic products spanning branded grocery staples, spices and condiments, edible oils, beverages, etc. SNBPL has a strong international presence with a deep connect with the Indian diaspora. SNBPL’s vertically integrated supply chain promotes sustainable livelihoods for its network of approx. 27,500 farmers spread across approx. 1.4 lakh acres of certified organic land in 10 states. The strong network of farmers and certified organic sourcing capability are key sources of competitive advantage for the company.
Hemant Malik, Wholetime Director, ITC, said, “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. Aligning with national priorities, we are confident that 24 Mantra Organic will fortify ITC’s presence and market standing in the high growth organic products space, in both Indian and overseas markets.”
Rajashekar Reddy Seelam, Founder & Managing Director, SNBPL, said, “After 21 years of partnering with Indian farmers to create trusted organic products, we are excited that ITC will be driving the next phase of growth for 24 Mantra Organic. ITC shares a common vision to promote sustainable livelihoods for farmers and ensure healthy lifestyle 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 for many generations to come, improve livelihoods of large number of farmers across the country and carry forward our legacy of ecological stewardship.”
