FMCG major ITC will buy a 100% share in Bengaluru-based healthy snack firm Yoga Bar, according to its regulatory filing on Tuesday.
Over the next three to four years, the tobacco-to-food behemoth will acquire 100 per cent of Yoga Bar’s parent firm, Sproutlife Foods (SFPL).
The business stated that it will buy 47.5 per cent of SFPL in tranches by 31 March 2025.
ITC would Invest Rs 175 crore for the acquisition of 39.4 per cent share, which is to be completed by 15 February 2023, and will further invest Rs 80 crore for the remaining 47.5 per cent stake, by 31 March 2025, it added.
The purchase of the remaining share will take place within three months of the date on which SFPL provides audited financial results for the fiscal year ending 31 March 2026, according to the ITC statement.
The investment is consistent with the ‘ITC Next’ strategy stated by the company’s Chairman Sanjiv Puri, which focuses on developing a future-ready range of goods that meet changing customer expectations.
The business hopes to strengthen its healthy foods portfolio with this purchase, which includes items such as aashirvaad multi-grain atta, aashirvaad nature’s superfoods, farmlite line of biscuits, sunfeast protein shake, and B natural nutrilite ABC beverage, among others.
“In line with the strategy to augment the company’s future-ready portfolio, the proposed acquisition will strengthen and expand its reach with innovative food products for health-conscious consumers,” the company said.
Commenting on this acquisition, Hemant Malik, Divisional Chief Executive, Foods Division, ITC stated, “We believe that this investment is an exciting opportunity that aligns with ITC’s Foods Business’ aspiration to build a formidable portfolio in the nutrition-led healthy foods space.”
“We look forward to scaling the Yoga Bar brand offering superior and healthy consumer choices. 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.
Suhasini Sampath Kumar and Anindita Sampath Kumar, co-founders, commented on the deal, saying, “We are delighted to join with ITC on Yoga Bar’s next phase of growth. ITC has a long history of building world-class brands , leveraging its core competencies, which include outstanding consumer understanding, strong backward linkages with the agri supply chain, and a deep and broad distribution network.”
“We are confident that 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 crores. We are delighted that ITC and Yoga Bar will work to build one of the most recognisable brands in the healthy foods industry “They stated.
Suhasini and Anindita Sampath, the company’s major stakeholder with a 49 percent interest, created Yoga Bar in 2015.
In 2021-22, the healthy snacking firm made Rs 68 crore, Rs 39 crore in 2020-21, and Rs 32 crore in 2019-20.
It distributes protein bars, muesli, peanut butter, whey protein, and gluten-free oats, among other things.