ITC Enters Share Purchase Agreement to Buy Sresta Natural Bioproducts
ITC Ltd has entered into a Share Purchase Agreement to buy all of Sresta Natural Bioproducts Pvt. Ltd.'s (SNBPL) shares, which produces and markets organic packaged food items under the "24 Mantra Organic" brand both domestically and abroad.
Subject to normal adjustments outlined in the Share Purchase Agreements, ITC has paid a consideration of up to Rs.472.50 crore on a cash-free, debt-free basis.
This amount includes Rs.400 crore payable at closing and up to Rs.72.50 crore payable in the 24 months following closure.
The founder, Raj Seelam, will stay involved with the company for two years and help with the transition.
It is anticipated that the deal would be finalized in Q1 of FY26.
Over 100 organic items, including branded food staples, sauces and spices, edible oils, beverages, and more, are part of SNBPL's range.
Through a number of programs and initiatives, the government has been aggressively supporting the organic food sector with the goals of enhancing food security, increasing exports, improving farmer livelihoods, and improving product packaging and marketing—all while advancing sustainable agriculture.
With its current advantages in areas like rice and organic tea, India is also well-positioned to develop into a worldwide center for organic sourcing, ITC stated.
It is projected that the domestic and export organic market in India is worth Rs.10,000 crore.
By using ITC's institutional strengths to drive synergies in areas like product development & innovations, sourcing, manufacturing, supply chain, and distribution, the acquisition will unlock value creation opportunities and further solidify ITC's commitment to building a portfolio of forward-thinking, successful brands that cater to the changing needs of Indian consumers, the company added.
The "ITC Next" plan of chairman Sanjiv Puri is in line with this investment.
ITC revealed plans in February to purchase the Prasuma brand of frozen and ready-to-cook foods.
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ITC recently announced that it has finalized negotiations to buy the remaining 73.5 percent of Mother Sparsh Baby Care Pvt. Ltd. (commonly known as "Mother Sparsh"), an associate business that works in the high-end ayurvedic and natural baby care market. According to the firm, ITC has the chance to expand and create a category of the future because the baby care market in India is underserved and underpenetrated.