ITC Ltd announces acquisition of shares in Sresta Natural Bioproducts, expanding its presence in organic and health foods.
ITC Acquires Shares in Sresta Natural Bioproducts to Bolster Organic Food Portfolio
Mumbai, June 13, 2025 — Striving to position itself in the fast-growing organic and health foods segment, ITC Limited (NSE: ITC) announced today the acquisition of a stake in Sresta Natural Bioproducts Private Limited, a leading Indian organic food company.
This acquisition, disclosed under Regulation 30 of SEBI’s Listing Obligations and Disclosure Requirements (LODR), reflects ITC’s continued investment in diversifying its FMCG portfolio and capturing consumer demand in the wellness-driven food sector.
What the Acquisition Means for ITC
The deal is a strategic fit with ITC’s larger agenda to establish a deeper foothold in the fast-growing natural and organic foods segment. The company has not revealed the value of the transaction in the BSE announcement but confirmed that the deal includes the acquisition of equity shares of Sresta Natural Bioproducts Pvt Ltd.
Sresta is most prominently associated with its key brand 24 Mantra Organic, which has a large assortment of organic food grocery products such as pulses, grains, flours, spices, and packaged food. As consumer awareness regarding health and sustainability increases, this deal perfectly complements ITC’s already existing areas of emphasis on sustainable consumption and innovation in the foods business.
About Sresta Natural Bioproducts Pvt Ltd
Established in 2004, Sresta has established a very strong market position in the organic category with its large network of farmers and ethical sourcing. It has one of India’s biggest portfolios of certified organic food products and exports to several nations. The company has made ‘trust’ and ‘quality’ synonymous with its brand name in the minds of health-oriented customers.
The Indian organic food market has seen tremendous growth in the last decade, driven by growing awareness of pesticide-free foods and a healthier lifestyle. Through this strategic buy, ITC is likely to utilize Sresta’s existing supply chain and product presence to broaden its FMCG basket.
Strategic Alignment with ITC’s FMCG Vision
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ITC’s FMCG business has been one of the primary areas of growth away from its historical tobacco domain. The company has been heavily investing in its foods businesses like Aashirvaad, Sunfeast, and B Natural, concentrated on health, nutrition, and convenience. Acquiring a robust organic brand like 24 Mantra Organic supports this trajectory.
“ITC’s investment in Sresta Natural Bioproducts is a natural progression of its focus on offering sustainable and health-centric products,” one industry analyst noted. “It also enables ITC to play more robustly in a segment increasingly crowded with niche startups and international organic brands.”
Market Reaction and Investor Insights
The acquisition news was announced after the market close on June 13, 2025. ITC, up to the present, has not provided financial details of the transaction or the share of stake bought. Nevertheless, the action is seen by many as a welcome indication of ITC’s long-term growth agenda and diversification.
Analysts anticipate that this purchase will enhance ITC’s existing supply chain capabilities, especially agricultural product sourcing and processing. It also lays the ground for future development in health-oriented product lines.
What’s Next?
While near-term operational shifts at Sresta Natural Bioproducts have not been spelled out, trade sources indicate that ITC could consider integration possibilities, using its distribution brawn to drive 24 Mantra Organic into unpenetrated markets — both within India and abroad.
With the Indian organic food market expected to grow over a five-year period at a CAGR of more than 20%, ITC’s early wager can generate handsome returns, particularly through urban and premium retail.
This deal is not just a portfolio expansion — it’s a testament to the changing face of ITC as a future-focused FMCG giant with a focus on sustainability, wellness, and innovation.
Key Takeaways:
- ITC Limited has acquired shares in Sresta Natural Bioproducts Pvt Ltd, best known for its organic brand 24 Mantra.
- The move strengthens ITC’s position in the organic and health foods space.
- This is in line with ITC’s broader FMCG strategy focused on wellness and sustainability.
- The Indian organic food market continues to be a key growth area for major FMCG players.
- Financial details of the acquisition have not yet been disclosed.
