ITC Boosts Ownership in Mother Sparsh to 49%, Aims for Complete Acquisition by Q1 FY27

Image source : Business Today

In a significant move to strengthen its presence in the growing consumer goods market, ITC Limited has announced an increase in its stake in Mother Sparsh, a leading brand in the natural and organic baby care space. ITC now holds a 49% share in the company and plans to complete the full acquisition by the first quarter of the financial year 2027.

Strengthening the Portfolio

ITC's strategic investment in Mother Sparsh is part of its broader initiative to diversify its portfolio, which already includes established brands in categories like FMCG, hotels, and paperboards. The move is aimed at tapping into the burgeoning demand for natural and sustainable products in India, particularly in the personal care and baby care sectors. Mother Sparsh’s focus on eco-friendly and toxin-free products aligns well with ITC's sustainability goals, making the acquisition a promising synergy for the company.

Long-Term Growth Strategy

The deal, which will see ITC gradually increase its stake over the next two years, reflects the company's confidence in Mother Sparsh's market potential. ITC plans to fully integrate the brand into its portfolio by FY27, thereby enhancing its presence in the high-growth natural product segment. Industry experts anticipate that this acquisition will further strengthen ITC’s position as a leader in the fast-moving consumer goods market.

A Competitive Edge in the Baby Care Market

Mother Sparsh, founded in 2016, has become one of India’s most trusted brands in the natural baby care category. Known for its wide range of baby products, including wipes, oils, and shampoos, the brand has seen impressive growth in recent years. With ITC's backing, Mother Sparsh is expected to accelerate its expansion across India and enhance its product offerings to meet the evolving needs of the modern consumer.

Looking Ahead

The completion of this acquisition is expected to bring new opportunities for both ITC and Mother Sparsh. By tapping into ITC’s vast distribution network and operational efficiencies, Mother Sparsh is set to scale rapidly, with the potential for regional and international expansion. ITC’s continued focus on sustainability and innovation will likely ensure that the brand stays competitive in an increasingly conscious market.

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