ITC (ITC) M&A Presentation summary

Strategic acquisition overview

• Announced acquisition of Mother Sparsh, a premium Ayurvedic and natural baby care brand.

• ITC's stake to increase from 26.5% to up to 49.3% with an investment of approximately Rs. 81 crore by Q1FY27.

• Total investment in Mother Sparsh will reach around Rs. 126 crore, with the balance stake to be acquired over 2–3 years.

• Mother Sparsh's management, including the founder, will continue to operate the business during the transition period.

• ITC will have board representation during this period.

Mother Sparsh brand and product portfolio

• Offers a wide range of Ayurvedic and plant-powered baby care products, including wipes, lotions, creams, and hygiene items.

• Products are clinically proven, dermatologist tested, and trusted by new-age mothers.

• Known for 99% pure water baby wipes and unscented product range.

• Annual revenue run rate exceeds Rs. 110 crore, with profitable growth and strong digital marketing.

• Brand blends Indian traditions with modern science for efficacy and safety.

Market opportunity and strategic fit

• Baby care market growing at ~14% p.a.; baby wipes segment at ~28% p.a.; total addressable market ~Rs. 3,000 crore.

• Low market penetration offers significant growth potential.

• Acquisition fills portfolio gaps and allows brand equity extension to kids' segment.

• Value creation expected by leveraging ITC's strengths in R&D, distribution, and manufacturing.