ITC Ltd. has completed the acquisition of Sresta Natural Bioproducts, the parent company of 24 Mantra Organic, for ₹400 crore, marking a strategic expansion into the organic food segment.
Key Details of the Acquisition
- Deal Structure: ITC acquired 100% of Sresta Natural Bioproducts, including its subsidiaries in the U.S. and UAE.
- Financial Terms: The acquisition was completed on a cash-free, debt-free basis, with an additional payout of up to ₹72.5 crore over the next 24 months.
- Strategic Expansion: ITC aims to strengthen its presence in the organic food market, leveraging Sresta’s established brand and distribution network.
Impact on ITC & Organic Food Industry
- Market Growth: The organic food sector in India is witnessing rapid expansion, driven by health-conscious consumers and sustainable farming practices.
- Brand Strength: 24 Mantra Organic has a strong foothold in India and the U.S., with a network of 27,500 farmers cultivating organic produce.
- Stock Market Reaction: ITC’s shares closed 1.67% lower at ₹413.95, reflecting minor volatility post-acquisition.
Future Outlook
With this acquisition, ITC is set to capitalize on the growing demand for organic products, reinforcing its commitment to sustainable and health-focused food offerings.
For more updates on corporate acquisitions and market trends, stay tuned! 🚀
