ITC Limited has signed definitive agreements to acquire the remaining 73.5% stake in Mother Sparsh Baby Care Private Limited (“Mother Sparsh”), an associate company operating in the premium Ayurvedic and natural baby care segment. This acquisition reinforces ITC’s commitment to building a robust portfolio of purpose-driven brands that cater to the evolving needs of Indian consumers, including those seeking specialized, natural solutions. Mother Sparsh will enhance the Company’s Personal Care Products Business with its innovative offerings. With the Indian baby care market still under-penetrated and under-served, the acquisition presents ITC with a strong opportunity to scale and lead the development of this emerging category.
Mother Sparsh has built a trusted name among Indian mothers by offering a premium range of Ayurvedic and natural products rooted in traditional Indian wisdom. Its product portfolio spans baby personal care, health and hygiene, and expert solutions. The company has embraced a digital-first strategy, with a strong online presence through its dedicated website (https://mothersparsh.com/) and major e-commerce platforms, alongside a focused offline footprint in specialty baby stores. With this approach, Mother Sparsh has grown its operations to an annual revenue run rate exceeding INR 110 crores, based on its trailing three-month performance.
The size of the baby care category in India is estimated to be approx. INR 3000 crores p.a. growing in high-teens. The demand for safer natural and specialized baby care products and solutions is gaining increasing traction amongst new-age mothers—a space where Mother Sparsh has carved a niche for itself.
This investment is in line with the ‘ITC Next’ strategy articulated by Chairman Mr. Sanjiv Puri that focuses also on building a future-ready suite of products that serve evolving consumer needs.
The acquisition is expected to unlock future growth opportunities by filling in whitespaces in the personal care products portfolio and will be scaled up further, leveraging the institutional strengths of ITC. ITC had first invested in Mother Sparsh in 2021 with the aspiration of having a significant play in the natural and ayurvedic segment as well as in the Digital online space. With follow on rounds of investment, ITC currently holds 26.5% stake in Mother Sparsh. The balance 73.5% stake in Mother Sparsh will be acquired by ITC over a period of 2-3 years.
Commenting on the development, Mr. 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.”
Speaking on the acquisition by ITC, Mr. 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.”
