New Delhi: Multi-conglomerate ITC will invest an additional Rs 81 crore in mother Sparsh, thereby increasing the stake in Indian baby care brand from 26.5% to 49.3%. ITC will invest in two branches at the end of the 27th quarter of fiscal year 1 through a combination of primary subscriptions and secondary purchases. Following this new strategic investment, the conglomerate’s total investment in baby care brands will reach about Rs 12.6 crore. Under pre-verified conditions and valuation criteria, balances will be obtained within two to three years.
Himanshu Gandhi, Founder and CEO, Mother Sparsh
“This acquisition is an exciting opportunity for a strong digital ecosystem,” said Sameer Satpathy, the divisional CEO of ITC’s Personal Care Products business unit.
Founder and CEO Sparsh mother Himanshu Gandhi said: “We are delighted that ITC has found value in Sparsh, as early investors, stepping up as early stage investors ready to capitalize on the growth potential in the baby care space. We have built mother Sparsh’s mother, full of love, passion and innovation, and we are delighted to find a bustling place in the area and know how to build and expand the brand.”
Sparsh mothers have a bunch of high-end natural and Ayurvedic products that they have earned the trust of Indian mothers in search of safe, high-quality baby care and are based on traditional Indian knowledge. The product range spans baby personal care, baby health and hygiene and baby expert products. The company has adopted a digital first strategy, with a strong influence between online channels. The entire range is available through its own dedicated website, Mothersparsh.com, as well as the entire e-commerce platform. It also has offline businesses that are focused on in baby stores. Sparsh’s mother’s current annual revenue operating rate is about Rs 11 billion.
The investment is consistent with the “ITC Next” strategy illuminated by Chairman Mr. Sanjiv Puri, which also aims to build future ready products to meet evolving consumer needs. The acquisition is expected to unlock future growth opportunities by filling in the white space in the personal care portfolio and will further expand to leverage ITC’s institutional advantages. ITC first invested in Mother Sparsh in 2021, aspiring to play an important role in the natural and Ayurvedic fields and in the digital online space. With the investment round, ITC currently holds a 26.5% stake in Sparsh’s mother. Within 2-3 years, ITC will receive a 73.5% stake in Sparsh.
