BackITC to acquire 100% of Sproutlife Foods' 'Yoga Bar' over 3-4 years
ITC will initially buy 39.4% stake for ₹175 crore. Further infusion of ₹80 crore for a total 47.5% stake will be done by 31 March, 2025
PremiumCigarette-to-hotel conglomerate ITC Limited on Tuesday announced plans to acquire D2C health food brand Yoga Bar, a health snack company based in Bengaluru. The FMCG major will acquire 100% of Sproutlife Foods Private Limited (SFPL) over a period of three to four years.
The company will initially buy 39.4% stake for ₹175 crore. Further infusion of ₹80 crore for a total 47.5% stake will be done by 31 March, 2025; and the balance stake will be acquired, basis pre-defined valuation criteria, subject to other conditions agreed to in the binding documents.
"ITC is fortifying its presence in the fast growing, nutrition-led healthy foods space, with a proposed strategic investment in Sproutlife Foods Private Limited (SFPL), a Direct-to-Consumer (D2C) StartUp engaged in the manufacture and sale of innovative products catering to health-conscious consumers under the clean label, new-age digital-first brand 'Yoga Bar'," the company said in an exchange filing.
“We are delighted to join hands with ITC in Yoga Bar's next phase of growth. We are confident that this partnership will add to Yoga Bar's competitive advantage and take it to the next level from the current Annualised Run Rate of over ₹100 crore. We are delighted that ITC and Yoga Bar will work together to build one of the largest brands in the healthy foods space," said co-founders Suhasini Sampath and Anindita Sampath Kumar, Yogabar.
Sproutlife is a start-up engaged in the business of manufacturing and selling food products under the trademark ‘Yoga Bar’. Positioned as a digital first brand, Yoga Bar currently has high salience of on-line sales (D2C, e-commerce platforms etc.) with growing presence in offline stores.
Yoga Bar's FY22 turnover was ₹68 crore and has a market size of ₹4,5000 crore.
Hemant Malik, Divisional Chief Executive, Foods Division, ITC Ltd said: "We believe that this investment is an exciting opportunity that aligns with ITC's Foods Business' aspiration to build a formidable portfolio in the nutrition-led healthy foods space. We look forward to scaling the Yoga Bar brand offering superior and healthy consumer choices. Within a short span of time, Yoga Bar has established itself as a leading brand in the healthy foods space, driven by impactful market positioning and a range of innovative products."
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