From Tobacco to FMCG, ITC on Saturday said in a regulatory filing that it has acquired an 8.70 per cent equity stake in D2C Ayurvedic and Personal care brand Mother Sparsh.
The acquisition is subject to ITC’s announcement that was made on November 26 where the Indian conglomerate said that they are going to pick up a 16 per cent stake in Mother Sparsh through a subscription agreement.
In a regulatory filing, the company said on December 17, 2021, “It has acquired 100 equity shares of Rs 10 each and 940 Compulsorily Convertible Preference shares of Rs 10 each of Mother Sparsh Baby Care Pvt. Ltd, representing 8.70 per cent of its share capital on a fully diluted basis”.
The Kolkata headquartered company on November 26 said that the acquisition will be completed in two tranches. With this investment, ITC will become an active player with many in-house products of Mother Sparsh and will actively use the same on its e-store.
This investment will effectively create a future-ready company and enhance its brand too. One part of the plan by ITC is to make a strategic shift from tobacco to FMCG which is now harnessing ITC’s overall growth and this is why the company is looking at more acquisitions in the FMCG sector to accelerate growth.
Mother Sparsh is a premium Ayurvedic and personal care brand in the D2C space, focusing on the mother and baby care segment. Incorporated on February 5, 2016, Mother Sparsh had reported annual revenue of Rs 15.44 crore in FY2020-21.