ITC announces two acquisitions worth Rs 598 crore

Bengaluru: Hotels to consumer conglomerate ITC on Thursday announced a deal to acquire Sresta Natural Bioproducts Private Limited, the owner of 24 Mantra Organic, and outlined a plan to increase its stake in Mother Sparsh Baby Care to complete ownership, in a major fast moving consumer good (FMCG) push. 

The combined value of these two transactions will be as much as Rs 598 crore.

Sresta, which is a player in the organic packaged staples category in India will be acquired for Rs 472.5 crore. The transaction includes an upfront payment of ₹400 crore, with up to a further ₹72.5 crore payable over two years, contingent on the company meeting performance milestones.

In a similar move, ITC has signed definitive agreements to raise its stake in Mother Sparsh, a premium ayurvedic and natural baby care brand from the current 26.5 per cent to a complete ownership over the next two or three years with an initial investment of around Rs 81 crore, to be made in two two tranches by the first quarter of fiscal year 2026–27. This will increase ITC’s holding to 49.3 per cent, with the remaining equity to be acquired later under pre-agreed valuation terms and subject to regulatory approvals.

Moreover, the total investment in Mother Sparsh will stand at approximately Rs 126 crore (a balance stake will be acquired over 2 to 3 years on pre-agreed conditions and valuation criteria). 

“These acquisitions demonstrate ITC’s commitment to scaling up purpose-driven brands in high-growth categories such as organic foods and natural personal care,” the company said in an official statement.

The company had recently acquired Century Pulp and Paper for Rs 3,500 crore.