ITC’s Rs 400 Crore Organic Food Acquisition Boosts Market Presence and Global Reach
Despite a 1-year return of -3.81 per cent, the company has delivered a 55.92 per cent return over three years
In a strategic move aimed at enhancing its footprint in the high-growth organic food segment, ITC Limited has successfully completed the acquisition of Sresta Natural Bioproducts Private Limited (SNBPL). The deal, valued at Rs 400 crore, with an additional Rs 72.50 crore payable over the next 24 months, marks a significant step in ITC’s long-term expansion strategy. The acquisition has generated stock market excitement as investors anticipate a broader and more diversified FMCG portfolio from the Large-Cap conglomerate.
SNBPL is a key player in the organic packaged staples segment and has built a strong network comprising 27,500 farmers and 1.4 lakh acres of certified organic farmland spread across 71 clusters in 10 Indian states. The acquisition also brings SNBPL’s international subsidiaries—Fyve Elements LLC in the United States and Sresta Global FZE in the UAE—under ITC’s umbrella, positioning the company for enhanced global reach in the organic food domain.
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As of June 13, 2025, ITC Limited's stock was trading at Rs 413.9, compared to its 52-week high of Rs 522.75 and a 52-week low of Rs 394.7. Despite a 1-year return of -3.81 per cent, the company has delivered a 55.92 per cent return over three years. The price-to-earnings (PE) ratio stands at 26.24, and the company’s market capitalisation is Rs 526,782 crore.
Founded in 1910, ITC has grown into a diversified FMCG and large-cap company, dominating various sectors such as cigarettes, packaged foods, agri-business, and paperboards. Its FMCG division—with brands like Aashirvaad, Sunfeast, and Yippee—reaches over 25 crore households. The company also commands an 80 per cent market share in India’s organised cigarette market. Its agri-business is a major exporter, while the paperboard division leads in sustainable packaging. Recently, ITC demerged its hospitality business, which operates over 130 hotels.
With a planned Rs 20,000 crore investment to strengthen competitiveness, ITC is focused on innovation via its ITC Life Sciences and Technology Centre, which has filed over 800 patents. While not a multibagger in the short term, ITC’s consistent growth, dividend track record, and strategic acquisitions continue to position it as a key blue-chip stock in the Indian stock market.
Disclaimer: The article is for informational purposes only and not investment advice.