Crime Today News
What made ITC to acquire Sresta Natural Bioproducts, the promoters of the organic food brand 24 Mantra? A brand with a good recall among the organic products consumer; a bouquet of over 100 products; an enticing ₹10,000-crore domestic and export market for organic products; holding relevant organic certifications; a huge presence in the US market; and a brand that resonates with its brand strategy — these are the factors that drove ITC to acquire the Hyderabad-based company.
On Thursday, ITC announced its acquisition of 24 Mantra for ₹472 crore. Raj Seelam, Founder of the target company, will assist in the transition and continue with the company for two years. The acquisition is expected to be completed in the first quarter of 2025-26.
“There is an increasing consumer preference for organic or natural foods. Reports peg the domestic demand and export potential at ₹10,000 crore. This segment is growing rapidly,” ITC said, explaining the rationale behind acquiring 24 Mantra.
The company felt that there was immense headroom for growth in this space. The organic food penetration in the country is very low at just 0.3 per cent. Another major factor behind ITC’s acquisition of 24 Mantra was its strong presence in diaspora markets, especially the US, which accounted for nearly half of its ₹300 crore turnover. The brand had built a distribution network across 900+ ethnic stores and was a preferred organic choice among women consumers.
Hemant Malik, Wholetime Director of ITC Ltd, said they are confident the acquisition will strengthen ITC’s presence and market position in the rapidly growing organic products sector, both domestically and internationally.
Interestingly, 24 Mantra also has a well-laid out backend farmers’ network like ITC has, with an aggregate 1.4 lakh acres of certified organic land in 10 States.
On an acquisition spree
ITC seems to be on an acquisition spree over the last 11 years as part of the ITC Next strategy. As it announced the acquisition of 24 Mantra on Thursday, it also announced the acquisition of the remaining 73.5 per cent stake in Mother Sparsh Baby Care, which is operating in the premium ayurvedic and natural baby care space. It bought 26.5 per cent in Mother Sparsh in 2021.
Earlier this year, it acquired Prasuma — a frozen & ready-to-cook foods company that specialises in oriental cuisine and sells a range of over 170 products. In 2023, it acquired Sproutlife Foods Pvt, the maker of Yoga Bar-branded products.
While it acquired Sunrise Foods in 2020, it bought ‘Nimyle’ range of herbal floor cleaners from Arpita Agro Products Ltd, marking its entry into the home care category.
The other two acquisitions are Savlon (2015) and B Natural from Balan Natural Foods.
Published on April 18, 2025
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