ITC to amass 16% stake in D2C model Mother Sparsh

Conglomerate ITC on Friday mentioned it’s going to purchase a 16 per cent stake in Mother Sparsh, a D2C Ayurvedic and pure private care model, for Rs 20 crore by way of a share subscription settlement.
Mother Sparsh is a premium Ayurvedic and pure private care start-up within the D2C area, specializing in mom and child care segments.
“The said acquisition will, inter alia, 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,” ITC mentioned in a regulatory submitting.
This share acquisition is anticipated to be accomplished, in two tranches, inside eight months from the date of execution of the Agreements.

It will even be topic to completion of situations and a shareholders’ settlement in reference to the proposed acquisition, it added.
Mother Sparsh, which was integrated on February 5, 2016 had reported a turnover of Rs 15.44 crore in FY 2020-21.
Commenting on the event ITC Chief Executive, Personal Care Products Business Sameer Satpathy mentioned, “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 CEO Himanshu mentioned, “ITC has been a frontrunner in developing a portfolio of vibrant FMCG brands and has been making giant strides in this space through a focus on innovation and digitalization. We believe that this partnership will provide a unique synergy of strengths to build our brand further.”
ITC has been focussing on the non-cigarette FMCG enterprise over the previous few years. In 2020, it acquired spice-manufacturer Sunrise Foods Private Ltd at an “upfront” money deal worth of Rs 2,150 crore.
“ITC is in sync with what we envisioned as the future of Mother Sparsh. We expect to scale-up our revenues to Rs 300 crore over the next three to five years,” Himanshu mentioned.
Mother Sparsh co-founder Rishu added, “The company at present registers over 85 per cent of its sales through online channels and has over the past 12 months diversified its product portfolio by over 25 per cent.”