ITC signs agreement to acquire ayurvedic-baby care brand Mother Sparsh
ITC Limited has signed definitive agreements to acquire the balance 73.5% stake in Mother Sparsh Baby Care Private Limited, an associate company, operating in the premium ayurvedic and natural baby care space.
Reinforcing ITC’s commitment to build a portfolio of winning brands that addresses the needs of Indian consumers including those seeking specialized solutions, Mother Sparsh will augment the innovative range of the Company’s Personal Care Products Business, an official statement said.
The baby care segment in India is under-penetrated and under-served providing ITC the opportunity to scale up and build a category of the future.
Mother Sparsh has a bouquet of premium natural and ayurvedic products including those of baby personal care, baby health and hygiene and baby expert products.
The company has adopted a digital first strategy with a presence across online channels.
The entire range has been made available through its website (https://mothersparsh.com/) as well as across e-commerce channels.
It also has a focused offline presence in baby stores. Mother Sparsh has scaled up to an Annual Revenue Run Rate of about Rs. 110+ crores (trailing 3 months basis).
The size of the baby care category in India is estimated to be appx. Rs. 3000 cr p.a. growing in high-teens. The demand for safer natural and specialized baby care products and solutions is gaining increasing traction amongst new-age mothers—a space where Mother Sparsh has carved a niche for itself.
This investment is in line with the 'ITC Next' strategy articulated by Chairman Sanjiv Puri that focuses also on building a future-ready suite of products that serve evolving consumer needs.
ITC had first invested in Mother Sparsh in 2021 with the aspiration of having a significant play in the natural and ayurvedic segment as well as in the Digital online space. With follow on rounds of investment, ITC currently holds 26.5% stake in Mother Sparsh.
The balance 73.5% stake in Mother Sparsh will be acquired by ITC over a period of 2-3 years.
Commenting on the development, Sameer Satpathy, Divisional Chief Executive, Personal Care Products Business Division, said: “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," he said.
Speaking on the acquisition by ITC, Himanshu, Founder & CEO, Mother Sparsh said: “We are delighted that ITC has found value in Mother Sparsh, coming forward as an early investor, well poised to leverage the growth potential in the baby care space. We have built Mother Sparsh with a lot of love and passion and we are happy to have found a home for it in a place where it will thrive.
"ITC is the largest incubator of FMCG brands in India and know how to build and scale brands. We are confident that ITC will take Mother Sparsh to the next level and help serve the needs of mothers for generations to come," he said.
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