Organic Ambitions: ITC Cultivates Growth with 24 Mantra Acquisition

Updated: December 01, 2025 04:52

Image Source: Medianews4u

ITC has acquired 24 Mantra Organic, marking a bold entry into India’s fast-growing ₹10,000 crore organic food market. With packaged organic foods valued at ₹3,000 crore and growing at 15–20% annually, ITC aims to expand distribution, strengthen exports, and leverage rising consumer demand for healthier, sustainable food choices.

India’s organic food market is witnessing a transformation, and ITC Ltd is positioning itself at the forefront with its acquisition of Sresta Natural Bioproducts, the company behind the 24 Mantra Organic brand. This strategic move underscores ITC’s commitment to diversifying its non-cigarette FMCG portfolio and tapping into the booming demand for organic packaged foods.

According to industry estimates, India’s organic food market is valued at ₹10,000 crore, with packaged organic products accounting for ₹3,000 crore. Despite this, penetration remains low at 0.3%, compared to the global average of 3.5–4%. ITC sees this gap as a massive opportunity to scale, both domestically and internationally.

Major Takeaways

Acquisition Details: ITC completed the acquisition of Sresta Natural Bioproducts (24 Mantra Organic) in 2025 for ₹472.5 crore.

Market Potential: India’s organic packaged food sector is growing at 15–20% annually, driven by health-conscious consumers.

Consumer Trends: E-commerce orders for organic food surged 60% year-on-year, reflecting rising awareness and affordability.

Export Strategy: ITC plans to expand beyond the US, targeting Europe and other overseas markets.

Integrated Approach: 24 Mantra’s “farm-to-fork” traceability model aligns with ITC’s sustainability goals.

Notable Updates

ITC’s move mirrors similar strategies by Tata Consumer Products, highlighting growing competition in the organic segment.

The acquisition strengthens ITC’s staples and food division, complementing its existing brands in packaged foods.

With rising demand for organic staples like rice, pulses, and spices, ITC aims to capture a larger share of household consumption.

Analysts view the acquisition as a future-ready investment, aligning with global trends in sustainable and ethical food production.

Conclusion: By betting big on 24 Mantra Organic, ITC is sowing the seeds of long-term growth in India’s organic food market. With consumer demand surging, export opportunities expanding, and sustainability at the core, ITC’s organic ambitions could redefine the packaged food landscape in India and beyond.

Sources: New Indian Express, The Hindu Business Line

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