ITC is set to acquire 100% of Sproutlife Foods Private Limited, owner of the 'Yoga Bar' brand, to enhance its portfolio in the growing nutrition-led healthy foods market.

Target Information

ITC is strengthening its position in the rapidly expanding nutrition-led healthy foods market, which is valued at Rs. 45,000 crores, through a strategic investment in Sproutlife Foods Private Limited (SFPL). SFPL operates as a Direct-to-Consumer (D2C) start-up, focusing on the manufacturing and sale of innovative health-oriented products under the clean-label, digitally-forward brand 'Yoga Bar'. The transaction will see ITC acquire 100% of SFPL over the next 3 to 4 years, starting with a 47.5% stake to be acquired in phases by March 31st, 2025. The remaining stake will be purchased based on predetermined valuation metrics, subject to conditions outlined in binding agreements.

Yoga Bar has established itself as a market leader with a diverse portfolio that includes Nutrition Bars, Muesli, Oats, and Cereals, all anchored on the principles of 'All Natural and No Artificial Ingredients'. The brand has quickly garnered a significant online presence, thriving on D2C and e-commerce platforms, and is expanding its reach in offline retail channels. In a relatively short timeframe, Yoga Bar has not only led the Bars segment but also secured a robust position in the Muesli market.

Industry Overview

The healthy foods industry in India is undergoing a significant transformation driven by changing consumer preferences toward nutrition-focused and clean-label products. With an increasing awareness of health and wellness, mo