ITC to get 16% stake in direct-to-consumer (D2C) space ‘Mother Sparsh’ with offer of Rs 20 Crore

Shares of ITC are 3.18% lower at Rs 223.95 per person on BSE

ITC today announced that it will acquire a 16% stake in ‘Mother Sparsh’ – a direct-to-consumer (D2C) natural and Ayurvedic personal care brand for Rs 20 crore. The fast-moving consumer goods (FMCG) industry will invest in brands focusing on the ‘mother and baby care’ segment, on a ‘fully diluted’ basis, according to ITC’s regulatory filings filed on the stock exchange today. today.

ITC has been focusing on the tobacco-free FMCG business for the past few years. With this deal, it proposes to register 16% of Mother Sparsh’s share capital. Sameer Satpathy, Managing Director, Personal Care Products said: “We believe this investment presents an exciting opportunity that aligns with our aspirations to have a key role in the industry. both organic and ayurvedic segments as well as in the D2C channel. Business, ITC.

Raising the amount of its Series A funding round, Mother Sparsh plans to deploy the fund towards enhancing its research and development initiatives, digital capabilities, and driving new product launches. and expand the team.

” The move is said to make sense after sales on the brand’s website have multiplied many times over the past few months. Currently, the company registers more than 85% of its sales through online channels and in the past 12 months has diversified its product portfolio by more than 25%,” Ms Rishu said. Co-founder, Mother Sparsh.

“ITC is a pioneer in the development of a vibrant portfolio of FMCG brands and has made great strides in this area through its focus on innovation and digitalisation. We believe in collaboration. This will provide a unique synergy to further build our brand” said Mr. Himanshu Gandhi, CEO, Mother Sparsh.

Established in February 2016, Mother Sparsh Baby Care Private Limited aka ‘Mother Sparsh’ has been creating a wide range of mother and baby care products since its inception, leveraging the wisdom of Ayurveda and ingredients of natural origin to provide effective products. The company recently entered the children’s segment with a complete, powered line of hair care products from Brahmi. ITI Capital acted as financial advisor to Mother Sparsh during the fundraising process.

On Friday, November 26, shares of ITC fell 3.18% at Rs 223.95 per unit on BSE.