ITC to acquire organic FMCG staples brand 24 Mantra Organic for ₹472.5 crore – CNBC TV18

Diversified group ITC Restricted on Thursday (April 17) mentioned it has signed a definitive settlement to acquire 100% of the share capital of Sresta Pure Bioproducts Personal Restricted (SNBPL), the corporate behind the ‘24 Mantra Organic’ brand, for a consideration of up to ₹472.5 crore. The acquisition marks a major transfer by ITC to develop its footprint within the quick-rising organic packaged meals phase.

Underneath the phrases of the deal, ITC can pay ₹400 crore upfront on the time of closing, with an extra quantity of up to ₹72.5 crore payable over the subsequent 24 months, topic to customary changes and efficiency-associated circumstances. The transaction is being executed on a money-free, debt-free foundation.

Sresta Pure Bioproducts Personal is a pioneer within the home organic meals area, offering absolutely built-in ‘Farm to Fork’ traceability and is a number one participant within the organic packaged staples class in India.

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Sresta Pure Bioproduct’s portfolio contains a variety of 100+ organic merchandise spanning branded grocery staples, spices and condiments, edible oils, drinks, and many others. SNBPL has a powerful worldwide presence with a

deep reference to the Indian diaspora.

SNBPL’s vertically built-in provide chain promotes sustainable livelihoods for its community of roughly 27,500 farmers unfold throughout roughly 1.4 lakh acres of licensed organic land in 10 states. The sturdy community of farmers and authorized organic sourcing functionality are key sources of aggressive benefit for the corporate.

Hemant Malik, Wholetime Director of ITC, mentioned, “We’re excited to have 24 Mantra Organic as a part of ITC’s Meals Enterprise’s portfolio of vitamin-led wholesome meals merchandise. 24 Mantra Organic has constructed a strong backend and sourcing community, which is core to its trusted organic merchandise portfolio.

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Aligning with nationwide priorities, we’re assured that 24 Mantra Organic will fortify ITC’s presence and market standing within the excessive-development organic merchandise area, in each Indian and abroad markets.”

Rajashekar Reddy Seelam, Founder & Managing Director, SNBPL, acknowledged, “After 21 years of partnering with Indian farmers to create trusted organic merchandise, we’re excited that ITC will probably be driving the subsequent section of development for 24 Mantra Organic.”

Shares of ITC Ltd ended at ₹427.25, up by ₹3.10, or 0.73%, on the BSE.