Shares of ITC settled 3.18 per cent lower at ₹ 223.95 apiece on the BSE
ITC today announced that it will acquire a 16 per cent stake in ‘Mother Sparsh’ – a direct to consumer (D2C) Ayurvedic and natural personal care brand for Rs 20 crore. The fast-moving consumer goods (FMCG) major will invest in the brand with a focus on the mother and baby care segment, on a ‘fully diluted basis’, according to a regulatory filing by ITC to the stock exchanges today.
ITC has been focussing on the non-cigarette FMCG business over the past few years. With the deal, it proposes to subscribe to 16 per cent of the share capital of Mother Sparsh. “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,” said Mr Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC.
Raising the amount in its Series A funding round, Mother Sparsh plans to deploy the funds towards enhancement of its research and development initiatives, digital capabilities, driving new product launches and expanding the team.
”The move assumes significance in wake of a multi-fold increase in the website sales clocked by the brand over the past few months. 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,” said Ms Rishu. Co-Founder, Mother Sparsh.
“ITC has been a frontrunner in developing a portfolio of vibrant FMCG brands and has been making giant strides in this space through focus on innovation and digitalization. We believe that this partnership will provide a unique synergy of strengths to build our brand further,” said Mr Himanshu Gandhi, CEO, Mother Sparsh.
Incorporated in February 2016, Mother Sparsh Baby Care Private Limited or ‘Mother Sparsh’ has crafted a wide range of baby and mother care products since its inception, that leverage the wisdom of Ayurveda and nature-based ingredients for potent product delivery. The company recently entered the kids segment with its Brahmi-powered, complete hair care range. ITI Capital acted as an financial advisor to Mother Sparsh for the fund-raising process.
On Friday, November 26, shares of ITC settled 3.18 per cent lower at Rs 223.95 apiece on the BSE.