ITC to acquire 16% stake in Mother Sparsh for Rs 20 crore – The New Indian Express
NEW DELHI: Cigarette hotel conglomerate ITC on Friday announced plans to acquire a 16% stake in Ayurvedic and natural personal care brand Mother Sparsh in the D2C space for Rs 20 crore through a deal of subscription of shares.
According to the company, the focus would be on the maternal and baby care segment. “This investment is in line with the ‘ITC Next’ strategy articulated by President Sanjiv Puri, which aims to build a future-ready organization with a digital culture first. One of the identified pillars of this strategy is to accelerate the digital transformation by developing FMCG Brands, ”the company said in a regulatory filing.
ITC has also focused on strengthening D2C distribution platforms and created a vibrant ITC online store, ITC said in the filing, adding that in recent years the company has engaged with the ecosystem of start-ups while exploring innovative distribution channels. .
Sameer Satpathy, Managing Director of Personal Care Products Business, ITC, said: “We believe this investment offers an exciting opportunity that matches our aspiration to play a significant role in both the natural and Ayurvedic segment. as well as in the D2C channel. . Mother Sparsh has, in a short time, evolved into an effective D2C brand with an innovative product line and a lot of promise. “
Mother Sparsh, incorporated on February 5, 2016, reported sales of 15.44 crore in fiscal year 2020-21.