Synopsis

Mother Sparsh anticipates a robust 30-40% revenue surge this year, defying broader consumption slowdowns. Indian parents are prioritizing their babies' health and well-being, investing in premium, 'no nasties' products. Leveraging ITC's extensive distribution, the brand aims to expand its reach beyond online channels into smaller cities, tapping into a growing demand for trusted, scientifically-backed baby care solutions.

Listen to this article in summarized format

Mumbai: Mother Sparsh expects revenue to grow 30-40% this year as Indian parents continue to spend on premium baby-care products despite a broader slowdown in discretionary consumption, highlighting the resilience of one of the country’s fastest-growing consumer goods categories.

The ITC-backed baby-care brand is also betting on the FMCG giant’s distribution network to expand beyond its strong online presence and tap demand in smaller cities, where premium baby-care adoption is accelerating.

“We haven’t seen any meaningful slowdown in spending when it comes to products directly linked to a baby’s health, safety, and well-being,” Himanshu Gandhi, co-founder and chief executive officer of Mother Sparsh, told ET. “Parents today are more informed than ever and increasingly willing to invest in products they trust.”

Mother Sparsh expects “a profitable growth of approximately 30–40% this year compared to the previous year.”

Also read | Beijing’s warning reveals real stakes of Modi–Takaichi summit

The outlook comes as India’s baby-care market undergoes a structural shift. Nearly two-thirds of urban households now buy baby-care products online, up from just a quarter four years ago, according to market researcher Numerator. Parents are increasingly seeking products free from parabens, preservatives, artificial colours and genetically modified ingredients, with 62% opting for premium brands until their child is at least two years old regardless of price. The urban baby-care market has expanded to about Rs 7,000 crore from Rs 6,200 crore in 2023, while annual household spending has risen 12%.

For Gandhi, who left a government career to become an entrepreneur, the focus has remained on building an enduring consumer brand rather than chasing rapid valuations. “When I left a secure government career to start Mother Sparsh, the goal was never just to build a business. It was to create products that parents could genuinely trust,” he said. “I’ve always believed that value creation eventually outweighs valuation creation.” He added: “If there is one lesson I have learned, it is that trust compounds over time. Whether with consumers, employees, partners, or investors, trust remains the strongest foundation upon which enduring brands are built.”

Industry executives say the first two years of a child’s life have become the key battleground for premium brands as parents prioritise safety over affordability. According to Numerator, more than two-thirds of parents use “no nasties” products until children turn two, while average annual spending on baby-care products has climbed to about Rs 6,800 per household.

Also read | India’s space industry eyes its SpaceX moment

Gandhi believes the next phase of growth will favour brands with stronger products rather than heavier marketing spends.

“The Indian baby-care market is undoubtedly maturing, and as categories evolve, consolidation is a natural outcome,” he said. “What we’re seeing today is a shift from brands built primarily on marketing to brands built on trust, product efficacy, and sustainable business fundamentals.”

While consumers remain willing to pay a premium, they are also demanding greater accountability.

“Brands need to justify their positioning through product performance and transparency.”

A key growth driver for Mother Sparsh will be offline expansion through ITC.

“With ITC’s distribution strength, we can significantly expand our reach across general trade, modern trade, and underserved geographies, making trusted baby care accessible to many more families,” Gandhi said.

The company also sees opportunities in maternal wellness, newborn care, sensitive-skin solutions and products for first-time parents as consumers increasingly seek natural formulations backed by science.

“Consumers no longer view traditional wisdom and scientific validation as separate; they expect both,” Gandhi said. “This convergence presents significant opportunities for innovation. “