ITC Limited has acquired 1,681 equity shares of Mother Sparsh Baby Care Private Limited, representing the second tranche of its investment in the entity. The shares, carrying a face value of ₹10 each, were purchased through a secondary transaction on May 19, 2026. This strategic move increases ITC's shareholding in Mother Sparsh from 39.47% to 49.32% of the share capital on a fully diluted basis.

The acquisition was executed for a cash consideration of approximately ₹30 crores. The company confirmed that the shares were purchased from existing shareholders and that the transaction does not qualify as a related party transaction. No governmental or regulatory approvals were required to complete this deal, which was executed pursuant to transaction documents dated April 17, 2025.

About Mother Sparsh

Mother Sparsh is a premium ayurvedic and natural personal care start-up incorporated on February 5, 2016. The company operates exclusively in India, focusing on baby personal care, health & hygiene, and expert baby care. The acquisition aligns with ITC's strategy to build a future-ready suite of products to serve evolving consumer needs.

Financial Performance

Mother Sparsh has demonstrated significant growth in turnover over the past three fiscal years, as detailed below:

*Note: Figures for 2024-25 have been restated on account of reclassification of certain expenses.

ITC is facing a significant 20% decline in cigarette sales during April-May, as price increases weigh on consumer demand, according to dealers. The sales slump follows a series of price revisions across the company's cigarette portfolio, including the recent hike on its Gold Flake Superstar brand.

Sales Impact From Price Increases

Dealers have flagged a notable drop in volumes, attributing the 20% sales decline directly to the price increases implemented by ITC. The development highlights the demand sensitivity among cigarette consumers in the Indian market following upward price revisions.

Price Revision Details

Among the recent price changes, ITC revised the retail price of its Gold Flake Superstar cigarettes upward. The following table outlines the key details of the price change:

Key Highlights

• ITC's cigarette sales have declined by 20% during April-May, as reported by dealers.
• The decline is attributed to price increases across ITC's cigarette portfolio.
• The price of Gold Flake Superstar has been increased from ₹70 to ₹79.
• The sales drop signals demand pressure following the price revisions in the Indian cigarette market.