arrow-left

ITC announces acquisition of Yoga bar to bolster presence in nutrition health foods space

  • India Infoline News Service |
  • 18 Jan, 2023 |
  • 9:49 AM

ITC Limited announced that it has agreed to acquire direct-to-consumer (D2C) start-up Sproutlife Foods Pvt Ltd in order to expand its presence in the fast-growing nutrition health foods space.

According to an exchange filing, ITC will buy out the company in tranches over a 3-4 years period. It plans to buy out 47.5% of Sproutlife Foods in tranches by March 2025.

By February 15, the company will invest upto Rs175 crore by subscribing to shares representing a 39.4% stake in the startup. It will also invest Rs80 crore by March 31, 2025.

ITC will acquire the remaining stake based on the pre-defined valuation criteria within three months of Sproutlife releasing its financial results for the fiscal year ending March 2026. 

Sproutlife Foods' revenue increased from Rs32 crore in 2019-20 to Rs68 crore in 2021-22 (April-March).

Yoga Bar's product lineup includes nutrition bars, muesli, oats, and cereals. It currently has a strong emphasis on online sales, with a growing presence in physical stores.

The acquisition will allow ITC to expand its future-ready portfolio and market presence in the 'Good for You' space, which currently includes Aashirvaad multi-grain atta, Aashirvaad Nature's Super Foods, Farmlite biscuits, Sunfeast Protein Shake, and B Natural Nutrilite ABC Beverage, among others.

At around 9.44 AM, ITC was trading 0.39% higher at Rs333.55, against the previous close of Rs332.25 on NSE. The counter opened at Rs334 and touched an intraday high of Rs334.05.

For feedback and suggestions, write to us at editorial@iifl.com

Invest wise with Expert advice

ad IconAd Image

Most Read News

Article Image
  • 14 March, 2022 |
  • 7:03 AM

The US Federal committee's meeting will conclude on March 16, 2022.

Most Shared News

No Record Found