ITC to acquire 16% stake in Mother Sparsh that focuses on baby care segment
Nov 26, 2021, 15:31 IST
Conglomerate ITC on Friday said it will acquire a 16 per cent stake in Mother Sparsh, a D2C Ayurvedic and natural personal care brand, for Rs 20 crore through a share subscription agreement. Mother Sparsh is a premium Ayurvedic and natural personal care start-up in the D2C space, focusing on mother and baby care segments.
"The said acquisition will, inter alia, enable access to the fast-growing direct to consumer (D2C) space in the 'personal care' category, which has been identified by the company as an area of interest," ITC said in a regulatory filing.
This share acquisition is expected to be completed, in two tranches, within eight months from the date of execution of the Agreements.
It will also be subject to completion of conditions and a shareholders' agreement in connection with the proposed acquisition, it added.
Mother Sparsh, which was incorporated on February 5, 2016 had reported a turnover of Rs 15.44 crore in FY 2020-21.
Commenting on the development ITC Chief Executive, Personal Care Products Business Sameer Satpathy said, "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."
Mother Sparsh CEO Himanshu said, "ITC has been a frontrunner in developing a portfolio of vibrant FMCG brands and has been making giant strides in this space through a focus on innovation and digitalization. We believe that this partnership will provide a unique synergy of strengths to build our brand further."
ITC has been focussing on the non-cigarette FMCG business over the past few years. In 2020, it acquired spice-manufacturer Sunrise Foods Private Ltd at an "upfront" cash deal price of Rs 2,150 crore.
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"The said acquisition will, inter alia, enable access to the fast-growing direct to consumer (D2C) space in the 'personal care' category, which has been identified by the company as an area of interest," ITC said in a regulatory filing.
This share acquisition is expected to be completed, in two tranches, within eight months from the date of execution of the Agreements.
It will also be subject to completion of conditions and a shareholders' agreement in connection with the proposed acquisition, it added.
Mother Sparsh, which was incorporated on February 5, 2016 had reported a turnover of Rs 15.44 crore in FY 2020-21.
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Mother Sparsh CEO Himanshu said, "ITC has been a frontrunner in developing a portfolio of vibrant FMCG brands and has been making giant strides in this space through a focus on innovation and digitalization. We believe that this partnership will provide a unique synergy of strengths to build our brand further."
ITC has been focussing on the non-cigarette FMCG business over the past few years. In 2020, it acquired spice-manufacturer Sunrise Foods Private Ltd at an "upfront" cash deal price of Rs 2,150 crore.
SEE ALSO: JSW Steel, Adani Ports and Hindalco are among top losers as fear of new COVID variant takes the wind out of Indian stocks
Future Retail denies Amazon’s allegation that it diverted $1.5 billion to other businesses
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