The acquisition is in line with ‘ITC Next’ vision articulated by Chairman Sanjiv Puri, which focuses on crafting a future-ready portfolio, tapping into high-growth segments and digital-first businesses
Bengaluru: Indian conglomerate ITC Ltd. has signed agreements to acquire the balance 73.5% stake in Mother Sparsh Baby Care Pvt. Ltd., a premium Ayurvedic and natural baby care brand, the company said in a press release on Friday.
ITC will invest Rs 81 crore through combination of primary subscription and secondary share purchase. Post this, the company’s total investment in Mother Sparsh will stand at around Rs 126 crore.
“We are delighted that ITC, who came on board as an early investor, is now taking Mother Sparsh to the next level. This partnership is a testament to the brand’s potential in the fast-growing natural baby care segment. We’re confident that ITC’s institutional strengths will help serve the evolving needs of Indian mothers for generations to come,” said Himanshu, Founder & CEO, Mother Sparsh.
Mother Sparsh offers a wide range of Ayurvedic and natural products across personal care, health and hygiene, and expert baby care. Its digital-first approach and presence across its own D2C platform and e-commerce channels have contributed to its growth, achieving an annual revenue run rate of over Rs 110 crore.
The acquisition is in line with ITC’s ‘ITC Next’ vision articulated by Chairman Sanjiv Puri, which focuses on crafting a future-ready portfolio, tapping into high-growth segments and digital-first businesses.
“This acquisition is an exciting opportunity, aligned with our aspiration to build a formidable portfolio of future ready, best-in-class innovative offerings that delights Indian consumers. Mother Sparsh in a true spirit of entrepreneurship, has created a reputed brand with Indian ethos in the natural baby care space, powered by an assortment of innovative products and a robust digital ecosystem,” said Sameer Satpathy, Divisional Chief Executive, Personal Care Products Business Division, ITC Ltd.
The acquisition will be completed over a period of 2–3 years and Mother Sparsh team will continue to operate the business during this period.
