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ITC completes Rs.400 crore acquisition of Sresta Natural Bioproducts

Synopsis:

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.

Also read: US FDA issues VAI classification with no observations for Syngene plant

ITC LTD

Trade

418.24.30 (1.03 %)

Updated - 16 June 2025
418.90day high
DAY HIGH
413.25day low
DAY LOW
6558114
VOLUME (BSE)

Key Takeaways

  • 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.

Table: Key Details of ITC–SNBPL Acquisition

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)

Organic Expansion Strategy And Portfolio Growth

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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