Measured Strategy in a Crowded Market
India’s personal care space has become increasingly crowded, with new-age brands emerging across categories such as skincare, baby care, men’s grooming, and natural wellness. Many of these brands are attracting premium valuations due to their digital reach and niche positioning.
However, ITC’s personal care business head Sameer Satpathy has indicated that the company remains cautious about chasing scale through acquisitions alone. Instead, ITC is prioritising long-term value creation over short-term market buzz.
Focus on Trust-Led Categories
ITC’s acquisition philosophy is rooted in categories where consumer trust plays a decisive role. Products linked to health, hygiene, and child care demand credibility built over time, something the company believes cannot be bought overnight.
This approach explains why ITC’s recent investments have been limited to baby care brands such as Mother Sparsh and Mylo. These brands operate in trust-sensitive segments where quality assurance, safety standards, and brand credibility are critical.
Unlike impulse-driven personal care categories, these segments align closely with ITC’s strength in compliance, distribution, and brand stewardship.
Learning From Past Acquisitions
ITC’s cautious stance is also shaped by the success of its earlier personal care acquisitions. Brands like Savlon, acquired in 2015, and Nimyle, acquired in 2018, have reportedly grown six to seven times in scale since becoming part of ITC’s portfolio.
Company executives attribute this growth to patient capital, consistent product development, and integration into ITC’s extensive supply chain and distribution network.
These experiences have reinforced ITC’s belief that nurturing brands organically within a larger ecosystem can deliver better outcomes than chasing rapid consolidation.
Contrasting Peer Strategies
Several of ITC’s listed peers have taken a more aggressive approach to acquisitions. FMCG majors such as Hindustan Unilever and Marico have acquired or invested in multiple independent and digital-first brands to gain faster access to premium and millennial consumers.
These deals often come with steep valuations, reflecting investor optimism about direct-to-consumer models and niche branding. ITC, however, remains unconvinced that all such acquisitions will translate into sustainable profitability.
The company prefers to evaluate whether brands can scale profitably beyond online channels and withstand competitive pressure over time.
Building, Not Just Buying
Rather than relying heavily on acquisitions, ITC continues to invest in building its own personal care brands across segments. The company is leveraging its strengths in research, manufacturing, and nationwide distribution to grow existing portfolios.
This strategy allows ITC to retain control over brand positioning, pricing discipline, and product quality factors it considers crucial in premium personal care.
Industry analysts note that while this approach may slow market share gains in the short term, it reduces the risk of overpaying for assets in an overheated market.
Outlook for Personal Care Business
India’s personal care market is expected to continue expanding, driven by rising incomes, urbanisation, and growing awareness of wellness and grooming. Premiumisation remains a strong trend, especially among younger consumers.
ITC believes it can tap into this growth without compromising financial discipline. The company has indicated it will continue to evaluate acquisition opportunities but only where strategic fit and long-term value are clear.
For official corporate disclosures, readers may refer to ITC Ltd and market updates from SEBI.
A Long-Term Play
In an industry increasingly driven by speed and scale, ITC’s approach stands out for its restraint. By focusing on trust-led categories, disciplined capital allocation, and patient brand-building, the company is betting on durability over disruption.
Whether this conservative strategy outperforms aggressive acquisition-led growth will become clearer over time, but for now, ITC appears content to let others race ahead while it builds quietly and steadily.
