Itc LimitedNSE: ITC

ITC to acquire Mother Sparsh - a premium Ayurvedic and Natural Baby Care Brand

· Issued by Itc Limited

Announcing Strategic Acquisition of

Mother Sparsh Baby Care Pvt. Ltd.

Mother Sparsh - A Legacy of Purity, Innovation & Trust

Plant Powered Baby Products Proven for their Efficacy in Convenient New-Age Formats

Blending the wisdom of Indian Traditions with Modern Science

Business started & run by Himanshu & Rishu Gandhi

Husband-Wife Duo

Efficacious Products

Clinically Proven &

Dermatologist tested

Premium Ayurvedic and Natural Baby Care Brand

99% pure water baby wipes Unscented product range

Annual Revenue Run rate

Rs. 110+ cr.

Profitable growth

Wide range of products

trusted by new-age moms

Digital First Brand

Strong Digital Marketing Capabilities

ITC an early partner in Mother Sparsh's journey with a 26.5% stake

www.mothersparsh.com

Wide Range of Ayurvedic & Natural Based Products

Baby Wipes

(99% Pure Water Wipes Plant powered Wipes)

Baby Hygiene

(Baby Detergent & Liquid Bottle Cleanser)

Baby Care

(Soaps, Baby Cream,

Lotions, Oil etc.)

Expert Baby Care

(Tummy Roll on,

After-bite balm etc.)

Strong Strategic Fit with ITC's Personal Care Portfolio

Fast Growing Market

Baby care market ~14% p.a. Baby wipes market ~28% p.a.

TAM^ ~Rs. 3000 cr.

Low Penetration

Foray into Baby Care

Value Creation

Category & Adjacencies

Opportunities

by Leveraging ITC's

Filling up portfolio whitespaces

Institutional Strengths

Brand equity extendable to Kids

^Total Addressable Market

Leveraging ITC's Institutional Strengths

R&D Expertise for Product & Claims Product Development | Innovation

Distribution Strength

Offline Retail | Alternate Channels

In-house Manufacturing (soaps, creams, liquids) - scale & cost advantages | Supply Chain Optimization

Procurement Efficiency

Packaging & Media

Transaction Structure

Strategic Acquisition of

• Investment of appx. Rs. 81 cr. in two tranches by Q1FY27

Mother Sparsh

− Combination of primary subscription & secondary purchase

− ITC's stake to increase from 26.5% to up to 49.3%

− Total investment in Mother Sparsh will stand at appx Rs. 126 cr.

• Balance stake to be acquired over 2 to 3 years on pre-agreed conditions and valuation criteria

Management

  • Mother Sparsh team including Mr. Himanshu, Founder & CEO will continue to operate the

business during the 2 to 3 year period

• ITC will be represented on the Board

Thank You

Company analysis

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