ITC Boosts Stake in Mother Sparsh: A New Era for Indian Baby Care

ITC is set to increase its stake in Mother Sparsh from 26.5% to 49.3% with an additional Rs 81 crore investment. This strategic move aims to enhance ITC's portfolio in the baby care segment, leveraging Mother Sparsh's strong digital presence and innovative natural product line.

In a significant strategic move, multi-conglomerate ITC will expand its stake in Mother Sparsh, an Indian baby care brand, from 26.5% to 49.3% with an additional investment of Rs 81 crore. This investment is set to occur in two tranches, incorporating both primary and secondary purchases, and is expected to finalize by the conclusion of Q1 FY27, according to a company statement.

This development will elevate ITC's total investment in Mother Sparsh to approximately Rs 126 crore. Over the next two to three years, the remaining stake will be acquired based on pre-determined conditions and valuation metrics. Sameer Satpathy, Divisional Chief Executive of ITC's Personal Care Products Division, sees this acquisition as a strategic alignment with ITC's vision to create a portfolio of next-gen, innovative offerings tailored to Indian consumers. Mother Sparsh has carved a niche in the natural baby care market, underpinned by its ethos, digital strategy, and innovative products.

Expressing delight over this collaboration, Himanshu Gandhi, Founder and CEO of Mother Sparsh, noted ITC's significant role as an early investor. The brand's love, passion, and commitment to quality have now found a nurturing home within ITC, India's largest FMCG brand incubator, which plans to take Mother Sparsh to new heights, addressing the needs of future generations of mothers.

The company, known for its premium natural and ayurvedic baby products, operates with a digital-first strategy, boasting a robust online presence alongside strategic offline channels. Currently, Mother Sparsh enjoys an annual revenue run-rate exceeding Rs 110 crore. This transaction is anticipated to unlock growth potential by filling gaps in ITC's personal care line, leveraging their institutional expertise.

ITC's initial investment in Mother Sparsh in 2021 marked its intent to excel in the natural and digital spaces. As ITC plans to acquire the remaining 73.5% stake over two to three years, Mother Sparsh continues to redefine baby care with offerings rooted in traditional wisdom and innovative design. Its flagship products, such as the 99% Pure Water Unscented Baby Wipes, emphasize the brand's commitment to quality and evolving parental needs.

(With inputs from agencies.)