ITC Expands FMCG Holdings with Sresta and Mother Sparsh Acquisitions
Deal News | Apr 18, 2025 | Ventureast
ITC, a diverse conglomerate in India, has announced two strategic acquisitions to bolster its presence in the fast-moving consumer goods (FMCG) sector. The company will acquire a 100% stake in Sresta Natural Bioproducts Pvt Ltd, owner of the 24 Mantra Organic brand, for ₹472.5 crore, and plans to increase its stake in Mother Sparsh Baby Care from 26.5% to complete ownership for an additional ₹81 crore, totaling the deals at ₹553.5 crore. Previously, ITC also entered a deal to purchase Aditya Birla Real Estate Limited's pulp and paper businesses. These moves underscore ITC's aim to expand its innovative portfolio and address the needs of Indian consumers, particularly within the under-served baby care market, which is valued at approximately ₹3000 crore annually.
Sectors
- Fast-Moving Consumer Goods (FMCG)
- Baby Care Products
- Organic Food Products
Geography
- India – The acquisitions involve Indian companies and highlight ITC's strategy to expand within India's FMCG market.
Industry
- Fast-Moving Consumer Goods (FMCG) – ITC's acquisitions of Sresta Natural Bioproducts and Mother Sparsh Baby Care are aimed at expanding its footprint in the FMCG sector.
- Baby Care Products – Mother Sparsh Baby Care's range of baby personal care and health products highlights the importance of the baby care industry in this transaction.
- Organic Food Products – Sresta Natural Bioproducts, known for 24 Mantra Organic, operates within the organic food products industry.
Financials
- ₹553.5 crore – Total value for acquiring stakes in Sresta Natural Bioproducts and Mother Sparsh.
- ₹472.5 crore – Cost to acquire 100% stake in Sresta Natural Bioproducts.
- ₹81 crore – Cost to acquire the remaining stake of Mother Sparsh Baby Care.
- ₹3,498 crore – Deal value for acquiring Aditya Birla's pulp and paper business.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ITC | Buyer | Company | A diversified conglomerate with business interests in FMCG, hotels, paperboards, and more. |
| Sresta Natural Bioproducts Pvt Ltd | Target | Company | Owner of the brand 24 Mantra Organic, involved in organic food products. |
| Mother Sparsh Baby Care | Target | Company | A premium baby care brand offering a range of personal care and health products. |
| Aditya Birla Real Estate Limited | Vendor | Company | The realty arm of the Aditya Birla Group, involved in the pulp and paper industry. |