In a strategic move to strengthen its presence in the growing natural and Ayurvedic baby care sector, FMCG giant ITC Limited has announced its decision to acquire an additional 73.5% stake in Mother Sparsh Baby Care. This acquisition, which will take place over a period of 2–3 years, will make Mother Sparsh a wholly-owned subsidiary of ITC. The move underscores ITC’s commitment to diversifying its portfolio and tapping into the rapidly expanding Direct-to-Consumer (D2C) market for natural baby care products.
About Mother Sparsh: A Leader in Ayurvedic Baby Care
Mother Sparsh Baby Care, founded in February 2016 by Himanshu Y Gandhi and Rishu Gandhi, has quickly become a significant player in the natural baby and mother care space. The brand focuses on providing Ayurvedic, chemical-free solutions to meet the needs of modern parents who are becoming increasingly conscious about the safety and quality of the products they use for their babies. With a robust product portfolio that includes baby wipes, oils, shampoos, and lotions, Mother Sparsh has carved a niche for itself in the competitive baby care market.
The brand is particularly known for its commitment to using natural ingredients and Ayurvedic formulations, which resonate with the growing demand for chemical-free alternatives. Thanks to its high-quality products and brand positioning, Mother Sparsh has achieved impressive growth, with a reported annual revenue run rate exceeding INR 110 Cr.
Why ITC’s Acquisition of Mother Sparsh is Significant
This acquisition by ITC is a clear indication of the increasing importance of natural and wellness-focused products in the FMCG sector. With consumers increasingly shifting towards more sustainable, health-conscious options, ITC’s move to acquire a majority stake in Mother Sparsh makes perfect sense. The transaction will help ITC diversify its product offerings beyond its existing portfolio, which spans categories like personal care, packaged foods, cigarettes, and lifestyle products.
Mother Sparsh’s Team Will Continue to Lead the Brand
Despite the acquisition, the Mother Sparsh team, including the company’s founder and CEO Himanshu Y Gandhi, will continue to lead the operations of the brand. This will ensure continuity in the brand’s vision and help maintain the entrepreneurial spirit that has made Mother Sparsh a popular choice for parents. With Himanshu Y Gandhi and the core leadership team staying on board, ITC will be able to leverage their expertise in the D2C and Ayurvedic space while providing the resources and scale of a much larger corporate entity to accelerate growth.
The Growing Demand for Natural Baby Care Products
The demand for natural, organic, and chemical-free baby care products has seen a significant surge in recent years, driven by increased awareness among parents about the harmful effects of chemicals in traditional baby care products. Consumers are now more inclined towards products that offer safety, efficacy, and a holistic approach to baby care. This trend is particularly visible in the growing popularity of Ayurveda and other traditional healing practices. Mother Sparsh, with its deep-rooted commitment to Ayurveda, is well-positioned to capitalize on this trend.
What This Means for ITC’s FMCG Business
The acquisition will allow ITC to expand its FMCG portfolio with an established brand that has a loyal customer base in the natural baby care segment. ITC’s expertise in building brands and its expansive distribution network will likely provide Mother Sparsh with a significant boost in terms of market reach. Additionally, ITC’s established presence in both physical and digital retail channels can enable Mother Sparsh to further strengthen its position in the D2C market.
Looking Ahead: ITC’s Vision for the Future
With this acquisition, ITC further solidifies its strategy of expanding its portfolio into high-growth categories. By diversifying into the natural and wellness segment, ITC is tapping into a market that shows great promise in the coming years. The focus on Ayurvedic and natural baby care products aligns perfectly with the growing trend of conscious consumerism, where customers are increasingly looking for products that are safe, sustainable, and environmentally friendly.
In conclusion, ITC’s acquisition of a majority stake in Mother Sparsh is an important development that underscores the company’s ambition to lead in the natural baby care space. With a strong foundation and a rapidly growing market for natural products, the partnership between ITC and Mother Sparsh promises to deliver value to both brands while meeting the evolving needs of modern parents.
