The organic packaged food segment in India has gained momentum with the entry of large FMCG players like ITC and Tata Consumer Products Ltd. ITC, which recently acquired Hyderabad-based 24 Mantra Organic, is doubling down on the fast-growing packaged organic food market, banking on rising consumer awareness, improved affordability through integrated sourcing, and significant export opportunities. The FMCG major is positioning itself to accelerate growth in a segment growing at 15–20% annually.
“Organic is a category of huge interest to consumers, the economy and farmers. There is also a lot of export potential,” said Anuj Kumar Rustagi, chief executive, Staples, Food Division, ITC, told TNIE.
According to Anuj Rustagi, India’s organic food market is currently valued at around Rs 10,000 crore, of which packaged organic accounts for Rs 3,000 crore. Penetration, however, remains minuscule at 0.35% — one-tenth the global average and a fraction of the US’s 5.8%. ITC sees this gap as the biggest opportunity.
As incomes rise and trust in brands strengthens, Rustagi believes India can “lead the world in organic penetration,” particularly in large household categories such as dals — a Rs 1.5–2 lakh crore market where even a 5–8% organic shift presents a multibillion-rupee opportunity.
Building a future-ready food portfolio
ITC entered the organic segment through Aashirvaad atta, but scale demanded a wider presence and farm-level infrastructure — something that takes 3–5 years to build.
“Organic has to start at the farm. Just because you work with farmers doesn’t mean the produce is organic,” Rustagi said. The company valued 24 Mantra’s deep backend -- a certified network of 27,000 farmers across 1.4 lakh acres.
24 Mantra brings over 140 organic products, enabling ITC to serve households looking to convert their entire pantry to organic — something that would have taken the conglomerate 8–10 years to build on its own.
The brand will continue to operate independently from Hyderabad with its leadership retained. “We are not here to tell them what to do — they are the experts in organic,” Rustagi said, adding the approach mirrors ITC’s decentralized leadership structure.
ITC acquired 24 Mantra Organic from Sresta Natural Bioproducts Private Limited for Rs 472 crore early this year. Rajashekar Reddy Seelam, founder & managing director, SNBPL, told TNIE that he is excited that ITC would be driving the next phase of growth for 24 Mantra Organic. “We are confident that ITC's institutional strengths in product development expertise and omni- channel distribution network will help in taking 24 Mantra Organic to millions of homes for many generations to come, improve the livelihoods of a large number of farmers across the country,” said Seelam.
The company will continue with the 24 Mantra Organic brand name, strengthening marketing investments to restore and expand its once market-leading position.
Exports to power next leg of growth
Nearly half of 24 Mantra’s current revenue comes from exports — largely to the US and the Middle East. ITC plans to deepen presence in North America and expand distribution to Europe and Canada.
“With our institutional resources, we can take this Indian brand global,” said Rustagi, noting the growing popularity of Indian cuisine worldwide.
The acquisition also unlocks new sourcing opportunities for ITC’s agri business to supply organic commodities to international buyers.
Organic products carry a price premium of 40%, making the category a sharp lever in ITC’s premiumisation strategy. While still small within ITC’s foods portfolio, Rustagi said the organic business will be a “significant contributor to future growth,” as packaged foods regain double-digit momentum post-inflation.
“Our first ambition is to become the market leaders again in the organic segment,” Rustagi said.
Competition
Within organic, there are players like Tata Consumer (Organic India), Organic Tattva, BigBasket’s organic brand, some retailers, and many smaller players. Then there are the “natural” ones like Patanjali. Tata Consumer’s Organic India made sales turnover of Rs 280 crore last year against 24 Mantra Organic’s Rs 300 crore.
Rustagi clarified that there are differences between Ayurvedic or natural and organic products. Organic, he says, is a full certification process growing crops without chemical fertilizers or pesticides, and ensuring full custody and storage protocols. People often think once the crop is grown, the job is done. Even storage has to be organic. “I cannot use fumigants or chemicals. There is specific technology modified storage in CO₂ atmosphere. That is organic,” he says.