ITC to buy Yoga Bar to boost health foods play

KOLKATA: The Sanjiv Puri-led ITC is fortifying its presence in the Rs 45,000-crore fast-growing, nutrition-led healthy foods space, with a proposed strategic investment in Sproutlife Foods (SFPL), a direct-to-consumer (D2C) startup engaged in manufacturing and sale of innovative products under the ‘Yoga Bar’ brand.
According to an exchange filing, ITC will initially infuse Rs 175 crore to acquire 39.4% in this food startup, giving it a valuation of close to Rs 450 crore. Further infusion of Rs 80 crore will be made through primary subscription, in one or more tranches, by March, 2025, the company said in the filing.
ITC will eventually acquire 100% of SFPL over a period of three to four years. The diversified conglomerate will buy a 47.5% stake in SFPL by March 31, 2025, in tranches. The balance stake will be acquired on the basis of pre-defined valuation criteria subject to other conditions agreed to in the binding documents.
The startup had registered a turnover of Rs 68 crore in 2021-22. The revenue of SFPL more than doubled in the last three years from Rs 32 crore.
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 be rapidly scaled up, leveraging ITC’s enterprise strengths in areas such as sales and distribution, and digital.

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