ITC Expands Portfolio: Acquires 24 Mantra Organic, Boosts Mother Sparsh Stake

Business

Posted by AI on 2025-04-18 19:24:57 | Last Updated by AI on 2025-12-18 02:40:31

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In a significant move signaling its growing focus on the FMCG sector, ITC Ltd. is set to acquire the popular 24 Mantra Organic brand and increase its stake in Mother Sparsh Baby Care. This double acquisition underscores ITC's strategic intent to solidify its presence in the burgeoning organic foods and personal care markets.

ITC's acquisition of SNB Pvt. Ltd (SNBPL), the holding company of the 24 Mantra Organic brand, is valued at ₹472.50 crore. Structured as an all-cash deal, the acquisition price is based on a cash-free, debt-free valuation. 24 Mantra Organic, a prominent player in the organic foods segment, offers a wide range of certified organic products, including staples, fruits, vegetables, and processed foods. This acquisition provides ITC with a ready-made platform to expand its presence in the rapidly expanding organic foods market, catering to the increasing consumer demand for healthy and sustainable food choices. The move complements ITC's existing agri-business and food processing capabilities, allowing for potential synergies and vertical integration within the supply chain. This strategic acquisition will undoubtedly bolster ITC's position in the organic foods landscape, providing a wider range of offerings to its diverse customer base.

Furthermore, ITC is bolstering its stake in Mother Sparsh Baby Care, a company specializing in Ayurvedic and natural personal care products for infants and mothers. While the exact financial details of the increased stake haven’t been disclosed, ITC confirmed it is acquiring the remaining 73.5% stake in the company. This move follows ITC’s initial investment in Mother Sparsh in 2021, demonstrating its continued confidence in the brand’s growth potential. Mother Sparsh has gained significant traction in recent years, appealing to parents seeking natural and chemical-free baby care solutions. This strengthened partnership aligns with ITC’s broader strategy of diversifying its product portfolio and tapping into evolving consumer preferences within the personal care segment. By strengthening its presence in the baby care segment, ITC can further leverage its distribution network and marketing expertise to reach a wider audience and establish a stronger foothold in this growing market.

These two strategic acquisitions represent a significant step forward in ITC’s ambition to expand its footprint in the FMCG sector. By incorporating established brands like 24 Mantra Organic and Mother Sparsh into its portfolio, ITC gains access to new markets and consumer segments while also enhancing its product diversification. This calculated move positions ITC for continued growth and reinforces its commitment to offering a wider array of products that cater to the evolving needs and preferences of the modern Indian consumer. This dual acquisition sets the stage for ITC to become a more dominant player in the Indian FMCG landscape, leveraging the strengths of these acquired brands to further its ambitious growth trajectory. The success of this integration will depend on ITC's ability to effectively leverage the existing brand equity of 24 Mantra Organic and Mother Sparsh while seamlessly integrating them into its existing distribution and marketing infrastructure.

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