In a significant step to expand its footprint in India’s fast-growing organic food and personal care markets, ITC Limited has announced definitive agreements to fully acquire Sresta Natural Bioproducts Private Limited (SNBPL), the company behind 24 Mantra Organic, and increase its stake in Mother Sparsh Baby Care Private Limited to 100%.
Strengthening the Organic Portfolio
On April 17, 2025, ITC’s Board of Directors approved the acquisition of 100% of SNBPL’s share capital via a Share Purchase Agreement valued at Rs 472.5 crore on a cash-free, debt-free basis. An upfront payment of Rs 400 crore will be made at the time of closing, with an additional Rs 72.5 crore payable over the next two years based on agreed milestones. The transaction is expected to conclude in Q1 of FY 2025-26.
SNBPL has established itself as a key player in the organic food sector through the 24 Mantra Organic brand, offering a wide portfolio of over 100 organic products including staples, spices, condiments, oils, and beverages. The company has built a robust sourcing ecosystem, working with approximately 27,500 farmers across 1.4 lakh acres of certified organic land spanning ten Indian states. It operates internationally through its subsidiaries Fyve Elements LLC (USA) and Sresta Global FZE (UAE), and reported consolidated revenues of Rs 306.1 crore in FY 2023-24.
This acquisition supports ITC’s strategy to strengthen its presence in the Rs 10,000 crore organic food market in India, which is growing at an annual rate of 15-20%.
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Expanding in Baby Care with Mother Sparsh
Simultaneously, ITC is set to increase its shareholding in Mother Sparsh from 26.5% to 100% over the next 2 to 3 years. In the first phase, it will raise its stake to 49.3% by Q1 FY 2026-27 through an investment of around Rs 81 crore. The complete acquisition is expected to be finalized by Q1 FY 2027-28, with a possible extension to FY 2028-29, subject to mutual agreement.
Founded in 2016, Mother Sparsh is a premium natural baby care brand offering a range of products including baby wipes, soaps, creams, detergents, and other personal hygiene items. It recorded revenues of Rs 58.7 crore in FY 2023-24. ITC aims to address product portfolio gaps and enhance its presence in the underpenetrated Rs 3,000 crore Indian baby care market, which is witnessing high double-digit growth annually.
Part of ITC’s ‘Next’ Strategy
These acquisitions are a key part of ITC’s ‘Next’ strategy, focused on diversifying into high-growth, future-ready categories such as organic food and health-focused personal care. ITC plans to leverage its strengths in product development, sourcing, manufacturing, and distribution to scale both 24 Mantra Organic and Mother Sparsh.
While Raj Seelam, founder of SNBPL, will stay involved for a two-year transition period, the leadership team at Mother Sparsh, including founder Himanshu, will continue to lead operations.
Importantly, ITC has confirmed that these acquisitions do not require regulatory or governmental approvals, allowing for a smooth and timely transition.
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