Diversified conglomerate ITC Ltd is set to increase its stake in Indian baby care brand Mother Sparsh from 26.5% to 49.3% with an additional investment of Rs 81 crore. The company said the investment will be carried out in two tranches — a mix of primary subscription and secondary share purchase — by the end of the first quarter of the financial year 2026–27 (Q1 FY27).
Following the fresh capital infusion, ITC’s total investment in the baby care firm will amount to approximately Rs 126 crore. The remaining stake in the company is expected to be acquired over the next two to three years based on pre-agreed valuation and conditions.
“This acquisition is an exciting opportunity, aligned with our aspiration to build a formidable portfolio of future-ready, best-in-class innovative offerings that delight Indian consumers. Mother Sparsh in a true spirit of entrepreneurship, has created a reputed brand with Indian ethos in the natural baby care space, powered by an assortment of innovative products and a robust digital eco-system,” Sameer Satpathy, Divisional Chief Executive of ITC’s Personal Care Products Business Division, said.
“We are delighted that ITC has found value in Mother Sparsh, coming forward as an early investor, well poised to leverage the growth potential in the baby care space. We have built Mother Sparsh with a lot of love, passion and innovation, and we are happy to have found a home for it in a place where it will thrive. ITC is the largest incubator of FMCG brands in India and knows how to build and scale brands. We are confident that ITC will take Mother Sparsh to the next level and help serve the needs of mothers for generations to come,” Himanshu Gandhi, Founder & CEO of Mother Sparsh, added.
Mother Sparsh, founded in 2016, offers a range of premium natural and ayurvedic baby care products. The company’s product portfolio includes items in baby personal care, health and hygiene, and expert care categories. The brand currently reports an annual revenue run-rate of over Rs 110 crore. ITC had first invested in the company in 2021 as part of its strategy to expand into the natural and ayurvedic personal care space, as well as strengthen its play in digital-first brands. The move aligns with ITC’s ‘Next’ strategy, which aims to develop a future-ready portfolio of products catering to evolving consumer preferences.