ITC Limited is acquiring a 100% stake in Sproutlife Foods Private Limited, the maker of Yoga Bar, to strengthen its portfolio in the healthy foods market.

Information on the Target

ITC Limited is poised to enhance its foothold in the rapidly growing nutrition-led healthy foods market through its proposed strategic acquisition of Sproutlife Foods Private Limited (SFPL), the parent company of the innovative brand 'Yoga Bar.' Yoga Bar operates primarily as a Direct-to-Consumer (D2C) start-up dedicated to manufacturing and selling a range of healthy products that cater to health-conscious consumers. The brand emphasizes clean label products, showcasing a commitment to natural ingredients without artificial additives.

Over the last few years, Yoga Bar has carved a niche for itself in the healthy foods sector, particularly excelling in the bars and muesli segments. With a strong online presence complemented by an expanding offline retail network, Yoga Bar has established itself as a leader in its field. ITC's acquisition will unfold over a period of three to four years, starting with a 47.5% stake by March 2025, and transitioning to a full acquisition based on agreed valuation metrics.

Industry Overview in the Target’s Specific Country

The healthy foods sector in India, which is valued at approximately Rs. 45,000 crore, is experiencing significant growth, driven by increasing consumer awareness about health and nutrition. As more individuals prioritize wel