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In this paper we propose an algorithm for embedding data a into color image which uses Increased multiple peaks histogram. The scheme does not require the knowledge of original image for recovery of watermark. The watermark is embedded in spatial domain in red, green and blue components (planes). This scheme can embed more data as compared to the existing schemes and maintain higher quality of host image. It provides an exact recovery of the host and the watermark images. 4.125 bits per pixel (bpp) of capacity is achieved with the quality of image level as 44.47dB for a color Lena image of the size 512 X 512 X 3 X 8.