ITC Strengthens FMCG Portfolio with 100% Acquisition of Sresta Natural Bioproducts The deal, valued at INR 472.50 crore on a cash-free, debt-free basis, is expected to be completed in the first quarter of FY 2025-26 or later, as mutually agreed.
You're reading BIZ Experiences India, an international franchise of BIZ Experiences Media.
In a significant move to strengthen its position in the fast-growing organic products space, FMCG brand ITC Limited on Thursday announced the acquisition of 100% shareholding in Sresta Natural Bioproducts, known for its flagship brand '24 Mantra Organic'.
The deal, valued at INR 472.50 crore on a cash-free, debt-free basis, is expected to be completed in the first quarter of FY 2025-26 or later, as mutually agreed.
As per the agreement, INR 400 crore will be paid upfront at the time of closing, with an additional Rs 72.50 crore payable over the next two years, subject to customary adjustments. ITC stated that the acquisition would allow it to scale its presence in both domestic and international organic markets, which are currently estimated to be worth INR 10,000 crore.
Sresta Natural's strong supply chain, with over 1.4 lakh acres of certified organic farmland spread across ten Indian states, will now be integrated into ITC's diversified FMCG portfolio. The move is aligned with ITC's strategy to tap into the rising consumer demand for health-conscious and sustainable products.
Simultaneously, ITC also announced plans to acquire the remaining 73.5% stake in Mother Sparsh Baby Care, in which it already holds a 26.5% stake since its initial investment in 2021. The company will invest INR 81 crore in two tranches by Q1 FY 2026-27, bringing its total investment to INR 126 crore and increasing its stake to 49.3%. The remaining stake is expected to be acquired by Q1 FY 2027-28 based on pre-agreed valuation metrics.
This development comes amid ITC's reported 7% YoY decline in consolidated net profit to INR 4,935 crore for the December 2024 quarter, while revenues rose 8% YoY to INR 20,350 crore. The acquisitions reflect ITC's intent to diversify and solidify its presence in high-growth, wellness-focused product categories.
