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ITC Ltd has acquired Sresta Natural Bioproducts for Rs.400 crore, making it a wholly owned subsidiary. The deal includes 1.87 crore shares and expands ITC’s organic food portfolio. ITC Ltd share price closed at Rs.413.90 on Friday.
ITC Ltd has completed the acquisition of a 100 percent stake in Sresta Natural Bioproducts Private Limited (SNBPL) for Rs.400 crore, marking its formal entry into the fast-expanding organic food category. The deal includes the purchase of 1.87 crore equity shares and was finalised on June 13, 2025, through an all-cash, debt-free transaction.
With this move, ITC adds the popular ‘24 Mantra Organic’ brand to its food portfolio and gains access to SNBPL’s existing global operations and robust supply chain. This includes subsidiaries Fyve Elements LLC in the US and Sresta Global FZE in the UAE, both of which have become step-down wholly owned subsidiaries of ITC Ltd.
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ITC acquired 100% of SNBPL for Rs.400 crore
The deal includes 1.87 crore equity shares
SNBPL’s overseas subsidiaries in the US and UAE are now under ITC
Up to Rs.72.5 crore may be paid additionally over 24 months
The transaction was completed on a cash-free, debt-free basis
ITC Ltd share price closed at Rs.413.90 on June 13, 2025
Also read: US FDA flags 8 observations at Sun Pharma's Halol plant post audit
Founded as an organic pioneer, SNBPL operates across 10 Indian states with a farmer network of nearly 27,500 cultivators managing around 1.4 lakh acres of certified organic farmland. Its retail brand, 24 Mantra Organic, has significant presence in India and international markets.
Detail | Value/Status |
Total Consideration | Rs.400 crore (upfront) |
Additional Payout (conditional) | Up to Rs.72.5 crore over 24 months |
Shares Acquired | 1.87 crore equity shares |
Acquisition Type | 100% stake, cash-free, debt-free |
SNBPL Main Brand | 24 Mantra Organic |
Global Subsidiaries Acquired | US (Fyve Elements), UAE (Sresta Global) |
ITC Ltd share price | Rs.413.90 (as of June 13, 2025) |
The acquisition supports ITC’s long-term strategy of building a future-ready, nutrition-focused food business. With an established farmer base and brand credibility, SNBPL strengthens ITC’s direct sourcing and global footprint in the organic segment. The integration also aligns with ITC’s push into value-added food categories, potentially enhancing revenue diversification.
Although the ITC Ltd share price dipped by 1.67 percent on the acquisition day, the strategic move positions the company for sustained growth in premium food markets and global exports.
Also read: City Union Bank confident of FY26 margins despite RBI rate cuts
Source: CNBCTV18
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