ITC said the acquisition will enable access to the fast growing D2C space in the 'personal care' category, which has been identified by the company as an area of interest.
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Hotel-to-Cigarette conglomerate ITC Ltd today announced that it will be acquiring a 16% stake in Mother Sparsh, a direct to consumer (D2C) ayurvedic and natural personal care start-up, for ₹20 crore through a share subscription agreement.
"The said acquisition will enable access to the fast growing direct to consumer (D2C) space in the 'personal care' category, which has been identified by the company as an area of interest," ITC Ltd has said in a filing.
"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," the company 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," Sameer Satpathy, Chief Executive, Personal Care Products Business, ITC stated.
ITC has been focusing on the non-cigarette FMCG business over the past few years. In 2020, it acquired spice-manufacturer Sunrise Foodsat an 'upfront' cash deal price of ₹2,150 crore.
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