ITC Goes Natural: Bets Big on Organics and Baby Care with Twin Acquisitions

Unknown Apr 02, 2026 1,000 Views

ITC Limited has two major acquisitions that have strengthened its position in India's fast-moving consumer goods (FMCG) space. The group has said it is completely acquiring Sresta Natural Bioproducts Pvt Ltd, the maker of 24 Mantra Organic brands, and set the ball rolling to gain total control over Mother Sparsh, a fast-rising natural baby care brand. These developments come in sync with ITC's 'ITC Next' thrust, looking to create a balanced, future-ready portfolio across categories with high growth potential.

Acquisition of 24 Mantra Organic

ITC will take over 100% of Sresta Natural Bioproducts Pvt Ltd (SNBPL), the entity behind 24 Mantra Organic, through an all-cash transaction worth up to ₹472.5 crore.
₹400 crore will be paid in cash at closing, with up to ₹72.5 crore payable within two years from closing, subject to performance milestones.
The acquisition is anticipated to be finalized during the first quarter of FY 2025-26.
24 Mantra Organic offers over 100 products, including staples, spices, condiments, edible oils, and beverages, with a strong presence both in India and internationally (notably the US).
The company sources from around 27,500 farmers across 1.4 lakh acres of certified organic farmland in 10 Indian states.
In FY24, SNBPL reported revenues of ₹306.1 crore, with approximately 50% coming from the US market.
The buyout is likely to boost ITC's footprint in the rapidly expanding Indian organic food market, currently pegged at approximately ₹10,000 crore and expected to expand 15–20% annually.

Mother Sparsh: On the Path to Complete Ownership

ITC presently owns 26.5% in Mother Sparsh and will acquire 49.3% of the holding via a two-tranche investment of approximately ₹81 crore by Q1 FY 2026-27.
The balance of the equity will be purchased over the next two to three years, thereby increasing ITC's holding to 100%, subject to pre-agreed valuation terms and regulatory approval.
Mother Sparsh, established in 2016, is a premium Ayurvedic and natural baby care brand offering wipes, lotions, cleansers, and balms, and has a digital-first strategy.
ITC has a yearly revenue run rate of ₹110 crore and is a familiar and trusted brand amongst Indian moms in need of secure, superior-quality baby care options.
ITC's deal to buy Ayursweet Pvt will assist ITC in augmenting its position within the under-penetrated Indian baby care market of around ₹3,000 crore growth at high-teens each year.

Strategic Rationale and Future Outlook

Both deals are part of ITC's 'ITC Next' strategy, aimed at creating a future-proof portfolio that caters to changing consumer demands in health, wellness, and sustainability.
ITC plans to use synergies in procurement, product development, manufacturing, and distribution to expand these brands locally and globally.
Continuity of leadership is arranged: SNBPL's founder Raj Seelam will support the handover for two years, with Mother Sparsh's founders handling operations during the transition.

Industry Impact

The transactions underscore ITC's focus on expanding purpose-led brands in high growth categories like organic food and natural personal care.
The acquisitions are likely to boost ITC's market position, diversify its FMCG portfolio, and leverage new-age consumer preferences centered on health, sustainability, and digital-first brands.

Sources: CNBC TV18, Economic Times, The Week, Business Standard, The Hindu Business Line, BusinessWorld

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