Over the past decade, ITC Limited, once synonymous with cigarettes, has been steadily reinventing itself as a diversified FMCG powerhouse. The recent acquisition of Sresta Natural Bioproducts, the maker of the organic food brand 24 Mantra, and the expansion of its stake in Mother Sparsh, an ayurvedic baby care brand, highlight a clear strategic intent: tap into high-growth, health-conscious, and premium lifestyle segments while future-proofing its business.
Healthy Growth Potential
The ₹472.5 crore acquisition of 24 Mantra gives ITC a firm footing in India’s growing ₹10,000 crore organic food market, which is expected to grow at 15–20% annually. The deal brings over 100 organic products under ITC’s wing, spanning rice, pulses, spices, oils, snacks, and beverages. Notably, nearly 50% of 24 Mantra’s revenue comes from exports, mainly to the US, where it enjoys significant diaspora-driven demand and shelf space in over 900 stores.
From a strategic lens, this marks a decisive re-entry into the edible oil business, a category ITC exited nearly three decades ago. With cold-pressed oils like mustard, sesame, and sunflower, 24 Mantra fits perfectly into the premium, health-oriented narrative ITC wants to build.
Backed by a strong farmer network of over 27,000 cultivators and access to 1.4 lakh acres of certified organic farmland, ITC now has an opportunity to deepen its agribusiness ecosystem while building consumer trust in provenance and sustainability.
Covering All the Bases Similarly, the complete acquisition of Mother Sparsh strengthens ITC’s growing personal care vertical. The premium baby care market is witnessing double-digit growth as millennial and Gen Z parents seek natural, safe alternatives. By first investing in 2021 and now completing the acquisition, ITC is demonstrating a classic “test and scale” approach to brand incubation.
Earlier in 2024, ITC also acquired Prasuma, a frozen foods specialist with a robust portfolio in Asian cuisine and ready-to-cook products, and Sproutlife Foods, the parent of Yoga Bar. These add to a roster that already includes Sunrise Foods (spices), Nimyle (home care), Savlon (personal hygiene), and B Natural (juices). The common thread: each of these brands aligns with changing Indian consumption patterns—healthier, more premium, convenience-driven, and trusted. Also read: ITC Acquires Century Pulp & Paper in ₹3,498 Cr Deal
Part of a Broader Strategic Play
This wave of acquisitions reflects the execution of the company’s “ITC Next” strategy, which seeks to de-risk the business from its dependence on cigarettes and build a globally competitive FMCG ecosystem. In FY24, ITC’s non-tobacco FMCG segment contributed ₹21,002 crore in gross revenue, making it the second-largest business after
cigarettes. The path forward involves leveraging ITC’s well-oiled distribution engine, agri-sourcing capabilities, and consumer insights to scale these new verticals.
However, despite ITC’s strengths, the challenge lies in integration, category expansion, and competitive differentiation. Companies like Tata Consumer Products and Dabur, alongside a wave of D2C brands, are also eyeing the same space.
What gives ITC an edge is its ability to back these acquisitions with deep capital, supply chain scale, and long-term brand building. The group’s experience with brands like Aashirvaad and Sunfeast has already demonstrated how it can turn acquired or incubated products into national champions.
Building for the Future
ITC is a known brand custodian, which is pivoting towards wellness, authenticity, and convenience rooted in emerging consumer values. As organic food, premium personal care, and healthy snacking shift from niche to norm, ITC’s acquisition spree could very well be its most significant pivot since the launch of Aashirvaad.
