ITC Limited , a diversified conglomerate, has made a significant move in the natural and organic food segment by acquiring Sresta Natural Bioproducts. The acquisition, valued at ₹472.50 crore, marks ITC's strategic entry into the growing market for organic and natural food products.

Acquisition Details

ITC has purchased the entire share capital of Sresta Natural Bioproducts in a structured deal:

• Initial Payment: ₹400.00 crore
• Deferred Payment: ₹72.50 crore (to be paid within 24 months)
• Total Acquisition Cost: ₹472.50 crore

Strategic Implications

This acquisition aligns with ITC's strategy to strengthen its presence in the fast-growing organic food market. Sresta Natural Bioproducts, known for its '24 Mantra' brand, is a significant player in the organic food industry, offering a wide range of products including staples, snacks, and ready-to-cook items.

Market Impact

The move is expected to complement ITC's existing food portfolio, which includes popular brands across various categories. By integrating Sresta's organic product line, ITC is poised to capitalize on the increasing consumer preference for natural and organic food options.

Looking Ahead

While the financial implications of this acquisition on ITC's overall business are yet to be fully assessed, the move demonstrates the company's commitment to diversifying its product offerings and tapping into emerging consumer trends.

Investors and industry observers will be keen to see how ITC leverages this acquisition to enhance its market position in the premium and health-focused food segment.

ITC Limited , a diversified conglomerate, has made a significant move to strengthen its position in the organic food market. The company has announced the acquisition of Sresta Natural Bioproducts, owner of the '24 Mantra Organic' brand, for an upfront consideration of ₹400.00 crore.

Acquisition Details

• ITC has acquired 100% shareholding of Sresta Natural Bioproducts
• The initial payment for the acquisition is set at ₹400.00 crore
• An additional payment of ₹72.50 crore is due within the next 24 months
• The acquisition includes Sresta's subsidiaries in the USA and UAE

Strategic Implications

This acquisition marks a strategic expansion for ITC in the rapidly growing organic food segment. By bringing Sresta Natural Bioproducts and its '24 Mantra Organic' brand under its umbrella, ITC is poised to enhance its presence and offerings in the health-conscious consumer market.

Market Impact

The move is expected to bolster ITC's portfolio in the organic food space, potentially leading to:

• Expanded product range in the organic category
• Increased market share in the health food segment
• Synergies between ITC's existing food business and Sresta's expertise in organic products
• Strengthened position in the organic products market

Looking Ahead

As consumer preferences continue to shift towards healthier and organic options, ITC's acquisition of Sresta Natural Bioproducts appears to be a timely strategic move. The company is likely to leverage this acquisition to tap into the growing demand for organic food products in India and potentially in international markets, given Sresta's existing presence in the USA and UAE.

The completion of this acquisition, including the additional payment, will be closely watched by industry observers and investors as ITC integrates Sresta's operations into its expansive business portfolio.