ITC Extends FMCG Portfolio with Mother Sparsh Acquisition for ₹506 Million

Strategic Acquisition Enriches ITC's Ayurvedic Baby Care Market Presence

 

ITC Limited has announced the acquisition of Mother Sparsh Baby Care Private Limited, an Ayurvedic and natural baby care brand, for ₹506 million. The acquisition is part of ITC's overall strategy to enhance its footprint in the rapidly expanding natural and wellness-oriented FMCG space.

 

Highlights:

 

Majority Stake Acquisition: ITC has inked definitive contracts to buy 73.5% stake in Mother Sparsh, which will become a wholly-owned subsidiary in the next 2–3 years2.

 

Ayurvedic Baby Care Focus: Mother Sparsh is an expert in chemical-free, Ayurvedic baby care products, in response to growing demand for natural and safe alternatives.

 

Revenue Growth: The brand has clocked an annual revenue run rate of over ₹110 crore, indicative of its market strength.

 

Digital-First Strategy: Mother Sparsh has a strong online presence on e-commerce websites, including its own website, echoing ITC's digital-first strategy.

 

Market Expansion: ITC plans to expand Mother Sparsh's scale of operations, using its institutional capabilities to leverage the ₹3,000 crore baby care market in India.

 

Mother Sparsh has found a niche in the natural baby care category, gaining the confidence of Indian parents looking for safe and superior products. ITC's acquisition will drive growth, bridging gaps in its personal care range and further committing itself to innovation.

 

Source:ITC Limited, Business Matters Magazine, India Retailing.