Indian conglomerate ITC will acquire Bengaluru-based Sproutlife Foods (SFPL), which owns the direct-to-consumer brand Yoga Bar. The 100% acquisition will happen over a period of three to four years, ITC said in a statement.
“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,” ITC said.
Hemant Malik, divisional chief executive, foods Division, ITC, told the media that the investment aligns with ITC’s food business’ aspiration to build a portfolio in the nutrition-led healthy foods space. “We look forward to scaling the Yoga Bar brand offering superior and healthy consumer choices.”
ITC’s current product range includes Aashirvaad multigrain atta, Aashirvaad Nature’s Superfoods, Farmlite range of biscuits, Sunfeast protein shake, B Natural, Nutrilite, ABC Beverage, among others.
Suhasini and Anindita Sampath Kumar, co-founders of Yoga Bar, said the move would take the brand to an annual run rate of over Rs 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,” they told the media.
An initial investment of Rs 175 crore would be made to get a 39.4% stake by February 2023 and a further infusion of Rs 80 crore by March 31, 2025, or later.