ITC Ltd has acquired Bangalore-based Balan Natural Foods B, a natural juice brand, for about ₹100 crore, a major step in fulfilling Chairman YC Deveshwar’s vision of making the company the No 1 non-cigarette consumer goods player in India.

“ITC has completed the acquisition of B Natural and is likely to launch the new segment in September this year. For now, it has decided to retain the B Natural brand. A separate juice division in the company has also been finalised post the acquisition and launch work is in full swing, including designing the collaterals like posters,” said a person aware of the development, requesting anonymity.

This is the company’s first major acquisition in the foods segment since it entered this business in 2001, barring the buyout of the Mint-O brand from the Delhi-based Candico in 2002 in the confectionery segment.

With the deal, company enters the ₹1,000 crore branded juice market, where it will taken on market leader Dabur India, which has a 54 per cent share through its Real fruit juice brand. PepsiCo India, which sells Tropicana juices, has a 25-30 per cent market share.

“This deal will be a positive development for ITC as the juice market is growing at a rate of 20-25 per cent and ITC’s entry into it will provide the company an opportunity to further expand its non-cigarette FMCG business,” said Kaustaubh Pawaskar, FMCG analyst at Sharekhan.

ITC’s non-cigarette business includes branded packaged foods, personal-care, lifestyle apparel, education and stationery, incense sticks and safety matches. The company is eyeing a turnover of ₹15,000 crore from this segment by 2017-18 against ₹7,000 crore in 2012-13.

Related Topics