In the next two to three years, ITC plans to acquire Mother Sparsh, increasing its stake to 49% with an additional INR 81 Cr investment.
After a projected investment of about INR 81 crore, the diversified conglomerate ITC will raise its ownership of Indian baby care company Mother Sparsh from 26.5% to as much as 49.3%. The deal is anticipated to close by the end of Q1 FY27 and is structured in two tranches using a combination of primary subscription and secondary purchase. At that point, ITC will have invested a total of about INR 126 crore in the firm.
The remaining stake will be acquired over the next two to three years, based on pre-agreed valuation metrics and conditions, effectively paving the way for a full acquisition. ITC first invested in Mother Sparsh in 2021 as part of its strategy to expand in the natural personal care and digital-first brand segments.
Commenting on the development, Sameer Satpathy, Divisional Chief Executive of ITC’s Personal Care Products Business, 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 delight Indian consumers. Mother Sparsh, in a true spirit of entrepreneurship, has created a reputed brand with Indian ethos in the natural baby care space.”
Founded by Himanshu Gandhi, Mother Sparsh is known for its portfolio of ayurvedic and plant-based baby care products. The company’s offerings span baby health, hygiene, and personal care categories. Gandhi remarked that ITC’s support strengthens the company’s growth outlook: “We are delighted that ITC has found value in Mother Sparsh… We are confident that ITC will take Mother Sparsh to the next level and help serve the needs of mothers for generations to come.”
Mother Sparsh has a digital-first business strategy and sells online and on major e-commerce sites. It also has a limited offline presence in baby care shops. At the moment, it generates more than INR 110 crore in income annually.
The investment is in keeping with ITC’s overarching ‘ITC Next’ strategy, which aims to diversify its FMCG portfolio and create a pipeline of innovative, consumer-focused brands. It is anticipated that ITC will be able to solidify its position in India’s expanding natural and ayurvedic personal care industry with the eventual purchase of Mother Sparsh.
