ITC Bolsters FMCG Portfolio with 24 Mantra Organic Acquisition and Mother Sparsh Consolidation
ITC is deepening its commitment to the FMCG sector with a strategic acquisition and a key consolidation move aimed at strengthening its presence in high-growth, health-conscious consumer segments. The company has fully acquired organic food brand 24 Mantra and increased its stake in baby care company Mother Sparsh to 100%.
The acquisition of 24 Mantra Organic, formerly under the ownership of Hyderabad-based Sresta Natural Bioproducts, marks ITC’s foray into the premium organic food segment. ITC initially acquired a 47.5% stake in Sresta in 2022. The latest move secures the remaining equity, giving ITC complete ownership of the 24 Mantra brand. This positions the company to tap into the growing demand for organic and sustainably sourced food products, a segment witnessing accelerated consumer adoption across urban India.
24 Mantra Organic, with a presence in staples, spices, breakfast cereals, and ready-to-cook products, is expected to complement ITC’s existing foods portfolio, which includes brands such as Aashirvaad, Yippee, and Sunfeast. The integration also allows ITC to leverage its robust distribution network to expand reach and scale up the availability of organic offerings in both physical and digital retail channels.
In a parallel move, ITC has completed the full acquisition of Mother Sparsh, a D2C-focused premium ayurvedic and natural personal care brand in the mother and baby care segment. ITC had earlier picked up 16% in the brand in 2021 and increased it to 26% the following year. The latest deal brings the total stake to 100%, enabling ITC to further build its footprint in the naturals and wellness-driven categories, particularly within the baby care segment, where demand for toxin-free and herbal products is on the rise.
These moves align with ITC’s targeted FMCG strategy, which focuses on high-growth adjacencies and premium segments. In fiscal 2024, ITC’s FMCG business (excluding cigarettes) delivered a top-line growth of 8.1%, with EBITDA rising 22% year-on-year. The company has also been accelerating its pace of premium brand innovation and new category expansion across health-focused and digitally native brands.