ITC Set to Acquire Mother Sparsh

In a move that signals the growing importance of the natural products segment, ITC and Mother Sparsh have formalized a relationship that will reshape India's premium baby care landscape. ITC's announcement to acquire the remaining 73.5% stake in the Ayurvedic baby care brand represents more than just another corporate acquisition—it highlights a fundamental shift in how legacy corporations are adapting to changing consumer preferences.

The partnership between ITC and Mother Sparsh began in 2021, when ITC first invested in the digital-first baby care brand. What makes this complete acquisition particularly noteworthy is the impressive growth trajectory Mother Sparsh has achieved, reaching an annual revenue run rate exceeding ₹110 crore—a testament to the brand's resonance with modern Indian parents seeking natural alternatives.

Behind the numbers lies an interesting strategic alignment. For Mother Sparsh, the deal provides access to ITC's extensive distribution network and institutional strengths while allowing the founding team to continue steering the company's vision. For ITC, this acquisition perfectly aligns with Chairman Sanjiv Puri's "ITC Next" vision of building a future-ready portfolio focused on high-growth segments and digital-first businesses.

Perhaps most fascinating about the ITC and Mother Sparsh partnership is how it exemplifies the evolution of traditional conglomerates. Rather than developing natural baby care products internally, ITC recognized the authenticity and innovation Mother Sparsh had already established—choosing to invest ₹126 crore total to acquire the brand's equity and expertise rather than competing directly.

For young entrepreneurs watching this space, the ITC and Mother Sparsh story offers a compelling narrative about building businesses with acquisition potential. By focusing on authentic products, digital-first strategies, and establishing leadership in specialized niches, startups can position themselves as attractive acquisition targets for legacy companies seeking to modernize their portfolios.

As consumer preferences continue evolving toward natural, purpose-driven brands, we can expect to see more strategic acquisitions following the ITC and Mother Sparsh model—where established players and innovative startups combine strengths to serve increasingly conscious consumers.