Mother Sparsh eyes Rs 100 cr revenue by FY23; bets big on baby care biz
NEW DELHI: Direct-to-consumer natural personal care brand Mother Sparsh is targeting a revenue of Rs 100 crore in FY23 with 60-65% revenue from baby segment and rest of it from kids and mom segment, its co-founder and CEO Himanshu Gandhi said. Total revenue this financial year would touch approximately Rs 35 crore, said Gandhi in an interaction with TNIE. The company is currently at an Annual Recurring Revenue (ARR) of Rs 50 crore.
Diversified conglomerate ITC picked up 8.70% equity stake in Mother Sparsh recently. The ITC investment opened doors for the brand, says Gandhi. “Since ITC is with us, we shall be going for another round of funds in the first quarter of next year. In that scenario and according to the funds raised, we will plan the retail strategy.”
For now, the company’s focus is online, which makes for 90-95% of its sales. Mother Sparsh’s own website contributes to 30-35% of the total revenue. “The concentration point is majorly to build sales through online and to create a D2C value chain through its website,” he said.
Mother Sparsh’s star product baby wipes has done sales of Rs 20 crore this year. “We sell wipes at a price of Rs 299. The general price range is Rs 150-200,” Gandhi informs, noting the brand targets semi-premium category. “Premium baby wipes market should be Rs 50-60 crore annually, and we would be able to take the brand to Rs 40 crore in just next year,” he adds.
Companies like Godrej and Dabur have recently forayed into the baby care segment. Digital disruption has led to many brands foraying in the segment, says Gandhi, pegging the baby skin care market in India to be around Rs 7,000-7,500 crore, diaper’s at Rs 5,000 crore and wipes’ at Rs 1,000-1500 crore.
DoT eases rule to enable roll-out of M2M services
The department of telecom (DoT) on Tuesday informed that it amended telecom licences to enable service providers to roll out machine-to-machine communication — a service which is considered as a key driver of 5G adoption in the country. As per the circular, the DoT in the license amendment has incorporated M2M with pan-India permit, limited to circle level and district level.
Now operators of M2M services will have an entry fee of Rs 30 lakh, performance bank guarantee (PBG) of Rs 40 lakh and financial bank guarantee (FBG) of Rs 2 lakh. The entry fee for the circle-level category has been fixed at Rs 2 lakh, PBG Rs 2 lakh and FBG at Rs 20,000.