ITC to Strengthen FMCG Portfolio with Rs 472.5 Crore Acquisition of Sresta Natural Bioproducts
In a strategic move to enhance its presence in the fast-growing organic and health-focused segment, ITC Ltd has announced its plans to acquire a 100% stake in Sresta Natural Bioproducts Ltd for Rs 472.5 crore. The acquisition marks a significant step in ITC’s efforts to diversify and grow its footprint in the premium and niche FMCG categories.
Hyderabad-based Sresta is the owner of the ’24 Mantra’ brand, a market leader in the Indian organic food space. Its portfolio spans over 200 products across staples, spices, breakfast cereals, beverages, and snacks—catering to health-conscious consumers seeking pesticide-free and non-GMO food options. The company’s products are available across more than 2,000 outlets and exported to over 50 countries, generating nearly 65% of its revenue from international markets.
The acquisition aligns with ITC’s strategy to build purpose-led brands addressing evolving consumer preferences, particularly the increasing demand for clean-label and sustainably sourced products. ITC anticipates the deal will offer synergies through brand integration, supply chain efficiencies, and broader market access for the ’24 Mantra’ range via ITC’s extensive distribution network.
Despite being in a niche segment, organic foods in India have experienced robust growth in recent years. The category is expected to be worth Rs 10,000 crore in the domestic market by 2025, according to market estimates. With growing health awareness, urban consumer adoption, and policy support, the sector presents strong opportunities for branded FMCG players.
The deal structure includes the acquisition of all outstanding shares of Sresta Natural Bioproducts by ITC, with the transaction subject to regulatory and other customary approvals. Once completed, the move is expected to reinforce ITC’s position in the health and wellness segment and strengthen its play in natural and organic foods—a key focus area in its next phase of growth.
This acquisition underscores the broader trend of legacy FMCG companies investing in differentiated, premium offerings to meet the evolving aspirations of Indian and global consumers.