ITC, the company known for its hotels and consumer products, announced two major acquisitions on Thursday worth a total of Rs 598 crore. These moves are part of ITC’s plan to expand its reach in the fast-moving consumer goods (FMCG) sector.
The first deal is the purchase of Sresta Natural Bioproducts, the company behind the popular 24 Mantra Organic brand. ITC will buy Sresta for Rs 472.5 crore. This includes an upfront payment of Rs 400 crore, with the remaining Rs 72.5 crore to be paid over the next two years if the company meets certain performance goals.
The second acquisition involves Mother Sparsh, a premium brand for ayurvedic and natural baby care products. ITC already owns a 26.5% stake in the company and plans to increase this to 100% in the next two to three years. ITC will initially invest Rs 81 crore in two payments, and after the full investment, its stake will increase to 49.3%. The remaining shares will be purchased later, based on agreed terms and approvals. Overall, ITC will invest about Rs 126 crore in total for the company.
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These acquisitions show ITC’s focus on growing brands in high-demand areas like organic foods and natural personal care products.
This follows ITC’s recent acquisition of Century Pulp and Paper for Rs 3,500 crore.
