ITC to Acquire Mother Sparsh in Next 2-3 years, Increases its Stake to 49% by Additional Investment of INR 81 Cr. ITC first invested in Mother Sparsh in 2021 as part of its strategy to expand in the natural personal care and digital-first brand segment
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Diversified conglomerate ITC will increase its stake in Indian baby care company Mother Sparsh from 26.5 per cent to up to 49.3 per cent, following a planned investment of around INR 81 crore. The deal is structured in two tranches—via a mix of primary subscription and secondary purchase—and is expected to conclude by the end of Q1 FY27. The total investment by ITC in the startup will then stand at approximately INR 126 crore.
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."
Operating with a digital-first model, Mother Sparsh sells through its website and major e-commerce platforms, while also maintaining a selective offline presence in baby care stores. It currently has an annual revenue run rate of over INR 110 crore.
The investment aligns with ITC's broader 'ITC Next' strategy, which focuses on diversifying its FMCG portfolio and building a pipeline of consumer-centric, innovation-led brands. The gradual acquisition of Mother Sparsh is expected to help ITC strengthen its position in the growing natural and ayurvedic personal care market in India.
