Multi-conglomerate ITC has completed the acquisition of Sresta Natural Bioproducts, which owns the “24 Mantra Organic brand”, in an all-cash deal valued at Rs 472.50 crore. This will help ITC expand its footprint in the fast-growing organic food products segment.
“The company completed the acquisition of 100 per cent of the share capital of Sresta Natural Bioproducts Private Limited (SNBPL) on June 13,” ITC said in a regulatory filing. On the acquisition cost, ITC said it had an upfront consideration of Rs 400 crore on a cash-free debt-free basis and additional consideration of up to Rs 72.50 crore, which is payable in the next 24 months.
In April, ITC had said that it had signed a share purchase agreement with SNBPL to acquire 100 per cent stake in the company. This acquisition is “in line with the strategy to augment the company’s future-ready portfolio. The transaction is expected to fortify ITC’s presence and market standing in the high-growth organic products segment in both Indian and overseas market,” the Kolkata-headquartered firm said.
SNBPL’s portfolio comprises a wide range of over 100 organic products, spanning branded grocery staples, spices and condiments, edible oils and beverages, among others. Besides, it has a strong international presence with a deep connection with the Indian diaspora.
The domestic organic food products industry offers a “significant opportunity” for growth on the back of increasing health and environmental consciousness, a rise in household incomes and new-age distribution channels, ITC said, adding that SNBPL is a pioneer and leading player in the organic packaged staples category.
SNBPL has two wholly-owned subsidiaries -- Fyve Elements LLC, USA and Sresta Global FZE, UAE. SNBPL, incorporated in March 2004, recorded a revenue of Rs 306.1 crore in FY 2023-24. Over the years, it has built a strong network of approximately 27,500 farmers and 1.4 lakh acres of certified organic land across 71 clusters in 10 states.
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