Cigarette-to-hotel major ITC Ltd on Friday said it will acquire 16 percent in Mother Sparsh Baby Care Private Ltd, a direct-to-consumer premium ayurvedic and natural personal care brand.

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ITC has agreed to acquire 16 percent of the share capital of Mother Sparsh on a fully diluted basis. 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. ITC has also been focusing on strengthening D2C platforms of distribution and has created a vibrant ITC eStore.

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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."

Speaking on this investment from ITC, Himanshu, CEO, Mother Sparsh said, "We are delighted that ITC has come forward to invest in our company which has been growing from strength to strength every year. 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."

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(Edited by : Jomy Jos Pullokaran)

First Published:Nov 26, 2021 4:27 PM IST