ITC has announced a strategic investment in direct-to-customer (D2C) startup Sproutlife Foods Private Limited (SFPL), in the manufacture and sale of products catering to health-conscious consumers under the clean label, digital-first brand ‘Yoga Bar’. According to the company, it will acquire 100% of SFPL over a period of three to four years. By March 31, 2025, the company will acquire a 47.5% stake in SFPL in tranches, and the balance stake will be acquired, basis pre-defined valuation criteria, subject to other conditions agreed to in the binding documents.
This investment is an opportunity that aligns with IT’s foods business’ aspiration to build a formidable portfolio in the nutrition-led healthy foods space, Hemant Malik, divisional chief executive, foods division, ITC Limited, said. “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,” he added.
As per a company statement, the acquisition will enable ITC to augment its future-ready portfolio and enhance market presence in the ‘Good for You’ space which currently includes Aashirvaad Multi-Grain Atta, Aashirvaad Nature’s Super Foods, Farmlite range of biscuits, Sunfeast Protein Shake, B Natural Nutrilite ABC Beverage among others. Yoga Bar is expected to scale up, and leverage IT’s enterprise strengths in areas such as sales and distribution, source, product development, and digital.
ITC has a history of building brands and leveraging competencies which encompass an understanding of the consumer, backward linkages with the agri supply chain and a distribution network, Suhasini Sampath Kumar and Anindita Sampath Kumar, co-founders, stated. “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 Rs 100 crore,” they highlighted.