ITC to acquire an additional 73.5% stake in Mother Sparsh Baby Care, an associate company, operating in the premium ayurvedic and natural baby care space.
ITC has signed definitive agreements to raise its stake in Mother Sparsh from the current 26.5% to full ownership over the next two to three years. The company plans an initial investment of around ₹81 crore, to be made in two tranches by the first quarter of FY2026–27.
Post the above, the Company’s total investment in Mother Sparsh will stand at ₹126 crores and the total stake will increase from 26.5% at present to up to 49.3% on a fully diluted basis.
Purchase of balance equity stake to be made by Q1 of FY 2027-28 (extendable to Q1 of FY 2028-29 under pre-agreed valuation terms and subject to regulatory approvals.
ITC had first invested in Mother Sparsh in 2021. With follow-on rounds of investment, ITC currently holds a 26.5% stake in Mother Sparsh. The balance 73.5% stake in Mother Sparsh will be acquired by ITC over 2-3 years.
Founded in 2016, Mother Sparsh is known for its premium baby care products including 99% pure water wipes, Ayurvedic lotions, cleansers, and balms. Mother Sparsh offers straddles baby personal care, baby health and hygiene and baby expert products. The company has adopted a digital-first strategy with a robust presence across online channels. The entire range has been made available through its website as well as across e-commerce channels. It also has a focused offline presence in baby stores.
The brand follows a digital-first approach and is currently operating at an annual revenue run rate of ₹110 crore.
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 eco-system.”
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.”
