ITC to acquire 16% stake in Mother Sparsh for Rs 20 crore
ITC’s share acquisition of Mother Sparsh will be done on a fully diluted basis and is expected to be completed in two tranches within eight months from the date of execution of the agreements.
November 26, 2021 / 04:02 PM IST
ITC will acquire a 16 percent stake in D2C Ayurvedic and natural personal care brand ‘Mother Sparsh’.(Representative image)
Kolkata-headquartered cigarette-to-hotel conglomerate ITC announced on November 26 that it would be acquiring a 16 percent stake in D2C Ayurvedic and natural personal care brand ‘Mother Sparsh’ for Rs 20 crore through a share subscription deal.
ITC said in a regulatory filing that the acquisition “will enable access to the fast-growing direct to consumer (D2C) space in the personal care category, which has been identified by the company as an area of interest”.
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“This investment is in line with the ‘ITC Next’ strategy articulated by Chairman Sanjiv Puri, which aims to build a future-ready organisation with a digital-first culture,” ITC said, adding it “has also been focusing on strengthening D2C platforms of distribution”.
Mother Sparsh products (Image: mothersparsh.com)
The share acquisition of Mother Sparsh will be done on a fully diluted basis and is expected to be completed in two tranches within eight months from the date of execution of the agreements.
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Speaking about the acquisition, Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC said: “We believe that this investment provides an exciting opportunity which is in alignment with our aspiration to have a significant play both in the naturals and ayurvedic segment as well as in the D2C channel. Mother Sparsh has, within a short span of time, evolved into an effective D2C brand with a range of innovative products and a lot of promise.”