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
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.