Cigarette Manufacturer To Buy Majority Stake in Ayurvedic Baby Care Brand

  • Investing.com
  • Stock Market News
Cigarette Manufacturer To Buy Majority Stake in Ayurvedic Baby Care Brand
Credit: © Reuters.

By Malvika Gurung

Investing.com -- In order to tap into the fast-growing direct to consumer (D2C) space, the Indian cigarette manufacturer, ITC (NS: ITC ) Limited has announced to acquire a stake of 16% in the Ayurvedic and natural personal care startup, on a fully diluted basis for Rs 20 crore.

The Kolkata-based conglomerate has been wanting to bolster the D2C platform, keeping in line with the decision to acquire majority stake in the premium Ayurvedic and natural personal care brand that focuses on mother and baby care segments.

The whole process of share acquisition will allegedly be completed in two parts within eight months from the date of execution of the Agreements, states an ET report.

ITC has increasingly been focusing on its non-cigarette business since the past few years, like the acquisition of the spice-manufacturer, Sunrise Foods Pvt Ltd, which was bought at a deal price of 2,150 crore in 2020.

The Ayurvedic and organic personal care brand Mother Sparsh Baby Care Private Ltd was launched in February 2016 and has registered 5x growth during the pandemic, with offline presence across 23 states pan-India. It has reported a turnover of Rs 15.44 crore in FY 2021.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100

Related Articles