The move signifies ITC's intentions to fortify its portfolio in the health foods space
ITC Limited announced on Tuesday that it plans to acquire the Bengaluru-based D2C (Direct-to-consumer) health food brand Yoga Bar. In the next three to four years, the cigarette-to-hotel conglomerate seeks to acquire complete ownership of Sproutlife Foods Private Limited (SFPL) – the parent company of Yoga Bar. ITC will at first purchase a 39.4 percent stake for 175 crore rupees, and subsequently increase the stake to a total of 47.5 percent by the end of March 2025, with the remaining stake to be acquired based on pre-defined valuation criteria, subject to the terms mentioned in the binding documents.
The move signifies ITC’s intentions to increase its presence in the health food space – a budding industry. Sproutlife Foods Private Limited (SFPL) caters to health-conscious consumers by manufacturing and selling healthy food products under the brand ‘Yoga Bar’, both online and offline, with a growing retail presence. The brand has a market value of 45,000 crore rupees and had a turnover of 68 crore rupees in FY22.
The Divisional Chief Executive of the food division of ITC Limited, Hemant Malik, remarked that the investment presents an exciting opportunity as it aligns perfectly with the company’s objective of building a strong portfolio in the healthy foods niche while scaling the Yoga Bar brand by enhancing the quality of offerings along with providing customers with more choices. He also appreciated Yoga Bar’s success over a short timespan and becoming a leading brand in the healthy foods space by providing a plethora of innovative products and through adept market positioning.