ITC Limited has agreed to buy a 16 per cent stake in Mother Sparsh, an ayurvedic and natural personal care brand in the D 2 C space, for Rs 20 crore, through a share subscription agreement.
The company identified the area of interest as an area of interest and will allow access to the fast-growing consumer D 2 C space in the 'personal care' category, according to the regulatory filing.
Within eight months from the date of execution of the Agreements, the share acquisition is expected to be completed in two tranches.
Mother Sparsh said that ITC has been a frontrunner in developing a portfolio of vibrant FMCG brands and has been making huge strides in this space through innovation and digitalization. We believe that this partnership will provide a unique synergy of strengths to build our brand further. Himanshu added.
The investment is in line with the ITC Next' strategy outlined by Chairman Sanjiv Puri, which aims to build a future-ready organization with a digital first culture, according to the firm in an official statement.
The past few years, ITC has focused on the non-cigarette FMCG business. In 2020, it acquired spice-manufacturer Sunrise Foods Private Ltd at an upfront cash deal price of Rs 2,150 crore.
On Friday, the scrip on the BSE closed 3.18% lower at Rs 223.95.