NEW DELHI: Hotel-to-Cigarette conglomerate ITC on Friday announced its plan to acquire a 16 per cent stake in ayurvedic and natural personal care brand Mother Sparsh in the D2C space for Rs 20 crore through a share subscription agreement.
The focus, said the company, would be on the mother and baby care segment. "This investment is in line with the 'ITC Next' strategy articulated by Chairman Sanjiv Puri which aims to build a future ready organization with a digital first culture. One of the identified pillars of this strategy is to accelerate digital transformation by developing digital-first FMCG brands," the company said in a regulatory filing.
ITC has also been focusing on strengthening D2C platforms of distribution and has created a vibrant ITC eStore, ITC informed in the filing, adding that over the last few years, the company has been engaging with the start-up ecosystem whilst also exploring innovative distribution channels.
Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC 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 has, within a short span of time, evolved into an effective D2C brand with a range of innovative products and a lot of promise."
Mother Sparsh, incorporated on February 5, 2016 had reported a turnover of `15.44 crore in FY 2020-21.