ITC Ltd will make its first investment in a direct to consumer (D2C) brand as the cigarette to chocolate conglomerate raises its bets on the fast growing online retail market.
ITC will buy a 16% stake in online first online first mother and care Mother Sparsh brand for Rs 20 crore the company said in a regulatory filing on Friday. The acquisition is in line with the ITC Next strategy that will see the company develop more digital- first fast moving consumer goods (FMGG) brands.
Mother sparsh is a premium Ayurveda and personal care brand with products such as baby wipes hair oils and skin creams for mother and babies. It was launched in 2016 by Himanshu Gandhi and Rishu Gandhi.
Several large packaged goods makers such as Marico Ltd and Kolkata based Emami have also invested in new age online brands.