India’s FMCG giant ITC Ltd is ramping up its presence in the baby care market with a strategic investment in Mother Sparsh, a brand known for its natural and Ayurvedic baby products.
ITC has announced an additional investment of ₹81 crore, which will raise its total shareholding in Mother Sparsh to 49.3%. With this move, the Kolkata-based conglomerate is strengthening its foothold in the premium personal care category, aligning with its broader diversification strategy beyond traditional tobacco products.
Two-Phase Investment Strategy
According to official reports, ITC’s fresh investment will be executed in two phases part through direct equity purchase and part through secondary market acquisition. Post this investment, ITC’s total infusion in Mother Sparsh will stand at ₹126 crore.
Previously, ITC held 26.5% stake in the baby care brand, which it first entered in 2021.
Why Mother Sparsh?
India-based Mother Sparsh offers natural and Ayurvedic infant care products that include lotions to toothpaste. The brand has established a strong online presence and now commands an estimated revenue of ₹110 crore annually.
This acquisition fits neatly into ITC’s broader playbook of expanding its personal care and FMCG portfolios a domain it has been aggressively targeting to offset its dependency on cigarette revenues.
A 115-Year-Old Powerhouse on the Move
Established in 1910, ITC has expanded from being a maker of cigarettes to being one of India’s most diversified giants, making everything ranging from packaged foods to agarbattis (incense sticks). The metamorphosis is evident in its strong market capitalization, reaching ₹5.35 lakh crore today.
Market Impact: ITC Shares in Focus
The performance of ITC’s stock is anticipated to be impacted by the announcement. ITC shares closed slightly higher at ₹427 on Thursday, the last trading day.
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