ITC's 24 Mantra to 'organic' growth boost

FMCG major is positioning itself to push growth in a segment growing at 15-20%

- DIPAK MONDAL @ New Delhi

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.

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 ₹1.5-2 lakh crore market where even a 5-8% organic shift presents a multibillion-rupee opportunity.

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